Charter Communications on a Growth Path: Mobile Services and Brand Relaunch as a Recipe for Success

Charter Communications is in excellent condition, surpassing expectations for revenue and profit in the third quarter. A clear winner of the current corporate strategy is the mobile segment: Through the successful integration of mobile services and a fresh brand strategy, the stock price rose by a remarkable 13%. The company’s revenue climbed to $13.8 billion, thanks to an impressive 37.6% increase in mobile service revenues, representing a 1.6% year-over-year growth. This more than compensated for declines in voice and video services. Adjusted EBITDA grew by 3.6%, while earnings per share reached $8.82, exceeding analysts' expectations by $0.27. Particularly noteworthy is the addition of 545,000 new mobile connections, bringing the total number of mobile customers to 9.4 million and underscoring Charter's position in integrated connectivity. However, the number of internet customers slightly declined, attributed to the phase-out of the FCC’s Affordable Connectivity Program. Charter also demonstrates agility in budget planning and has reduced investment targets for 2024 to $11.5 billion. The focus is now on rebuilding network infrastructure following recent hurricanes. Despite the reduced budget, expansion into underserved areas remains a strategic goal. Free cash flow rose to $1.6 billion, benefiting from optimized expenditures and increased EBITDA. With the new brand identity "Life Unlimited," Charter offers customers an improved package that bundles mobile and internet services into a simpler pricing model. In the entertainment business, Spectrum TV scores with new streaming offerings like Disney+ and Paramount+ at no additional cost to customers, strengthening Charter's position as a leading provider of comprehensive entertainment and connectivity solutions.