Charter Communications Clocks Mixed Earnings In Q2, Residential Internet Customers Surge

Charter Communications, Inc CHTR reported second-quarter FY23 revenue growth of 0.5% year-on-year to $13.66 billion, missing the consensus of $13.85 billion.

Revenue decline of (0.3)% in Residential, 29.8% in Mobile, and 1.4% in Commercial drove the top line.

Charter added 70,000 residential Internet customers, compared to 17,000 last year. Residential video customers decreased by (189,000) versus a decrease of (240,000) in the prior year.

Adjusted EBITDA margin was flattish at 40.4%. EPS of $8.05 beat the consensus of $7.66.

As of June 30, Charter served 30.6 million residential and SMB Internet customers. Net cash flow from operating activities totaled $3.3 billion. The company held $478 million in cash and equivalents.

This week, Verizon Communications Inc VZ clocked a sales decline of 3.5% year-on-year to $32.6 billion, missing the consensus of $33.3 billion. Adjusted EPS of $1.21 beat the consensus of $1.16.

AT&T Inc T this week reported second-quarter FY23 operating revenues of $29.9 billion, up 0.9% year-over-year, marginally beating the consensus of $29.9 billion. Adjusted EPS of $0.63 beat the consensus of $0.60.

Also, T-Mobile US, Inc TMUS reported second-quarter revenue of $19.2 billion, a decline of 2.6% year-on-year, missing the consensus of $19.3 billion. EPS of $1.86 beat the consensus of $1.69.

Price Action: CHTR shares traded lower by 2.61% at $390.53 on the last check Friday.