Charter beats Q3 estimates with smaller-than-expected broadband subscriber losses

Charter Communications Inc. reported third-quarter earnings that surpassed analyst expectations, sending shares up 4.7% in premarket trading Friday.

The cable and broadband provider posted adjusted earnings per share of $8.82, beating the consensus estimate of $8.67. Revenue rose 1.6% YoY to $13.8 billion, also topping expectations of $13.66 billion.

Charter’s Internet customer base declined by 110,000 in Q3 to 30.3 million, while mobile lines increased by 545,000 to reach 9.4 million. Total customer relationships fell 1.7% YoY to 31.7 million.

“We executed well during the third quarter, building on our operating strategy and foundational investments,” said Chris Winfrey, President and CEO of Charter. “Now and in the future, we have the best, fully deployed network uniquely capable of delivering seamless connectivity and entertainment, everywhere we operate.”

Residential revenue was flat at $10.8 billion, as 37.6% growth in mobile service revenue and 1.7% growth in Internet revenue offset a 6.7% decline in video revenue. Commercial revenue increased 2.0% to $1.8 billion.

Adjusted EBITDA grew 3.6% to $5.6 billion in Q3. Free cash flow jumped 47.6% to $1.6 billion, driven by lower capital expenditures and higher adjusted EBITDA.

Charter now expects full-year 2024 capital expenditures of approximately $11.5 billion, down from previous guidance of $12 billion, reflecting lower network evolution and line extension spending. Investing