NASDAQ$CHTR

Charter Communications Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Charter's Q3 2021 results showed revenue growth, customer relationship increases, and strong free cash flow generation.

Charter Communications reported a 9.2% year-over-year increase in revenue to $13.1 billion for Q3 2021, driven by growth in residential, mobile, and commercial sectors. The company added 185,000 residential and SMB customer relationships and 244,000 mobile lines. Net income attributable to Charter shareholders was $1.2 billion, and free cash flow grew by 41.2% to $2.5 billion.

  • Total residential and SMB customer relationships increased by 185,000 in Q3 2021.
  • Residential and SMB Internet customers increased by 265,000 in Q3 2021.
  • Residential and SMB mobile lines increased by 244,000 in Q3 2021.
  • Q3 revenue grew by 9.2% year-over-year to $13.1 billion.

Headline financials

Total Revenue

$13.1B

Previous: $12B+9.2%
EPS (adj)

$6.50

Previous: $3.90+66.7%
Residential Customer Relationships

29.8M

Previous: 28.9M+3.2%
Small Business Customer Relationships

2.1M

Previous: 2.0M+5.2%
Residential Internet Customers

28.0M

Previous: 26.8M+4.3%
Small Business Internet Customers

1.9M

Previous: 1.8M+5.9%
Residential Video Customers

15.3M

Previous: 15.7M-2.7%
Small Business Video Customers

604.0K

Previous: 530.0K+14.0%
Residential Voice Customers

8.8M

Previous: 9.3M-5.9%
Small Business Voice Customers

1.3M

Previous: 1.2M+5.5%
Residential Mobile Lines

3.1M

Previous: 2.0M+52.7%
Monthly Residential Revenue per Customer

$115.15

Previous: $109.03+5.6%
Monthly Small Business Revenue per Customer

$167.29

Previous: $164.77+1.5%
Capital Expenditures

-$5.56B

Previous: -$5.35B-3.9%
Free Cash Flow

-$4.35B

Previous: -$4.54B+4.2%
Net Income

$1.22B

Previous: $814M+49.5%
Operating Income

$2.93B

Previous: $2.17B+34.8%
Gross Profit

$13.1B

Previous: $12B+9.2%
Cash & Equivalents

$466M

Previous: $1.28B-63.7%
Total Assets

$142B

Previous: $144B-1.2%
Stock-Based Comp

$98M

Previous: $83M+18.1%

Revenue & EPS history

Charter · Revenue · Quarterly

$13.1B

Q3 2021+9.2%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Charter · $13.1B total across 8 segments · Q3 2021

  • Internet
    $5.36B+13.6%
  • Video
    $4.5B+6.7%
  • Small business
    $1.06B+7.5%
  • Mid-market & large business
    $656M+6.3%
  • Mobile service
    $535M+45.4%
  • Voice
    $409M-8.9%
  • Advertising sales
    $391M-15.0%
  • Other
    $228M+6.5%

Forward guidance

Charter remains focused on improving the quality and value of its products as demand for more advanced services grows. The company is confident in its ability to grow customers, EBITDA and free cash flow for many years to come.

Tailwinds

  • Demand for more advanced services is growing.
  • Data usage both inside and outside the home continues to increase.
  • Network and product capabilities are growing.
  • Spectrum Mobile introduced new Unlimited pricing starting at $29.99/month per Unlimited line for customers with at least two lines.
  • Customers qualify for the new multiline pricing when combining By the Gig lines for $14/GB with Unlimited lines.

Headwinds

  • Lower net additions relative to 2020 and 2019 was primarily a function of fewer selling opportunities partly offset by lower churn in the third quarter of 2021.
  • Residential video customers decreased by 133,000 in the third quarter of 2021.
  • Residential wireline voice customers declined by 230,000.
  • Third quarter advertising sales revenue of $391 million decreased by 15.1% compared to the year-ago quarter, driven by lower political revenue.
  • The decrease in line extensions was driven by housing build delays due to supply chain constraints in the housing industry.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.3%

Avg return

Earnings day

+2.2%

Avg return

5 days after

+2.4%

Avg return

30 days after

58%

38 / 65 earnings

Positive

+19.7%

Q2 2024

Best reaction

-20.6%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.8%-34.4%-40.0%
Q4 2025+9.1%+17.1%+22.5%
Q3 2025-3.8%-2.5%-13.3%
Q2 2025-2.2%-0.7%-2.1%
Q1 2025+11.4%+16.9%+21.2%
Q4 2024+2.6%+2.5%+8.0%
Q3 2024+14.7%+24.5%+21.2%
Q2 2024+19.7%+20.5%+10.6%
Q1 2024+0.3%+0.2%+4.8%
Q4 2023-20.6%-25.8%-23.3%
Q3 2023-5.3%-1.3%-1.4%
Q2 2023+1.0%+4.5%+3.9%
Q1 2023+6.9%+4.1%-3.6%
Q4 2022-4.7%-2.9%-8.7%
Q3 2022+3.5%-2.3%+9.8%
Q2 2022-2.1%+3.8%-2.3%
Q1 2022-6.3%-2.8%+10.5%
Q4 2021+5.8%+7.0%+7.2%
Q3 2021-4.9%-1.9%-4.7%
Q2 2021+5.1%+7.9%+13.1%
Q1 2021+1.1%+0.6%+3.7%
Q4 2020-8.5%-6.9%-6.3%
Q3 2020+2.2%+10.2%+11.6%
Q2 2020+4.7%+6.2%+9.3%
Q1 2020+4.1%+1.8%+9.8%
Q4 2019+7.9%+5.9%+0.0%
Q3 2019+7.4%+7.7%+7.7%
Q2 2019-2.9%-5.0%-4.9%
Q1 2019+0.0%+1.8%+2.2%
Q4 2018+17.6%+17.5%+19.5%
Q3 2018-4.4%+1.8%-1.7%
Q2 2018+2.6%+3.3%+5.2%
Q1 2018-9.0%-7.8%-9.4%
Q4 2017+0.4%-2.1%-10.4%
Q3 2017-7.3%-3.1%-4.6%
Q2 2017+6.2%+11.1%+11.5%
Q1 2017-5.7%-2.7%+0.7%
Q4 2016+0.4%-0.0%+0.2%
Q3 2016-1.1%+3.7%+5.4%
Q2 2016+7.3%+9.2%+13.4%
Q1 2016+2.8%
Q4 2015-4.5%
Q3 2015+3.7%
Q2 2015+0.7%
Q1 2015+0.2%
Q4 2014+6.3%
Q3 2014+4.7%
Q2 2014-5.9%
Q1 2014+5.5%
Q4 2013-6.3%
Q3 2013-5.0%
Q2 2013-0.4%
Q1 2013+4.8%
Q4 2012+8.1%
Q3 2012-4.8%
Q2 2012-2.0%
Q1 2012+8.6%
Q4 2011+0.2%
Q3 2011+4.9%
Q2 2011-3.6%
Q1 2010-1.8%
Q1 2011-1.8%
Q4 2010+6.7%
Q3 2010+10.0%
Q2 2010+0.0%

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