Charter Communications Residential Video Subscribers Are Falling, Stock Slides

Charter Communications, Inc CHTR reported third-quarter FY23 revenue growth of 0.2% year-on-year to $13.58 billion, missing the consensus of $13.63 billion.

Revenue decline of (0.3)% in Residential, 33.8% in Mobile, and 0.8% in Commercial drove the top line.

Charter added 57,000 residential Internet customers, compared to 61,000 last year. Residential video customers decreased by (320,000) versus a decrease of (211,000) in the prior year.

Adjusted EBITDA margin was flat at 40%. EPS of $8.25 beat the consensus of $7.94.

Third quarter free cash flow of $1.1 billion decreased from $1.5 billion in the prior year, primarily due to higher capital expenditures, driven mainly by Charter's network evolution and expansion initiatives. 

As of September 30, Charter served 30.6 million residential and SMB Internet customers. 

Net cash flow from operating activities totaled $3.9 billion. The company held $571 million in cash and equivalents.

CEO Chris Winfrey said its 2022 multi-year strategic initiatives continue to drive continuing improvements in the quality of its products, and when combined with its customer-friendly pricing and packaging and high-quality service, will translate into significant, long-term growth in shareholder value.

Price Action: CHTR shares traded lower by 6.97% at $383.00 premarket on the last check Friday.