Charter Communications(CHTR) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter total revenue increased by 1.6% year-over-year to $13.9 billion, driven by residential mobile service revenue growth of 37.4% and advertising sales revenue growth of 26.4%[12][17] - Fourth quarter Adjusted EBITDA was $5.8 billion, reflecting a year-over-year growth of 3.4%[3][10] - For the year ended December 31, 2024, net income attributable to Charter shareholders totaled $5.1 billion, with fourth quarter net income at $1.5 billion, a 38.6% increase year-over-year[3][10] - Fourth quarter advertising sales revenue of $540 million increased by 26.4% year-over-year, primarily driven by higher political revenue[20] - Consolidated net income for the year ended December 31, 2024, was $5,853 million, up from $5,261 million in 2023[56] - Basic earnings per share for Q4 2024 was $10.32, a 42.9% increase from $7.23 in Q4 2023[51] Customer Metrics - As of December 31, 2024, Charter served 30.1 million Internet customers, a decrease of 177,000 in the fourth quarter, primarily due to the end of the FCC's Affordable Connectivity Program and hurricane impacts[3][6] - Total customer relationships decreased by 215 in Q4 2024, down from a decrease of 149 in Q3 2024 and a decrease of 110 in Q4 2023, resulting in a total of 31,473 customer relationships[59] - Residential customer relationships penetration dropped to 55.4% in Q4 2024 from 56.0% in Q3 2024 and 58.1% in Q4 2023[59] - Total Internet customers decreased by 177 in Q4 2024, compared to a decrease of 110 in Q3 2024 and a decrease of 61 in Q4 2023, totaling 30,080[59] - Total video customers decreased by 123 in Q4 2024, down from a decrease of 294 in Q3 2024 and a decrease of 257 in Q4 2023, resulting in 12,892 total video customers[59] - Total mobile lines increased by 529 in Q4 2024, compared to an increase of 545 in Q3 2024 and an increase of 546 in Q4 2023, totaling 9,883[59] Revenue Streams - Mobile service revenue grew by 37.4% in Q4 2024, reaching $860 million, up from $626 million in Q4 2023[48] - Commercial revenue increased by 1.9% year-over-year to $1.8 billion, driven by enterprise and SMB revenue growth of 4.4% and 0.3% year-over-year, respectively[19] - Other revenue totaled $884 million in the fourth quarter, an increase of 14.6% year-over-year, primarily driven by higher mobile device sales[20] Capital Expenditures - Fourth quarter capital expenditures totaled $3.1 billion, including $4.2 billion for line extensions throughout 2024[3][10] - Capital expenditures totaled $3.1 billion in the fourth quarter of 2024, an increase of $206 million compared to the fourth quarter of 2023[28] - Charter expects full year 2025 capital expenditures to total approximately $12 billion, including line extensions capital expenditures of approximately $4.2 billion[29] - Total capital expenditures for Q4 2024 were $3,062 million, an increase from $2,856 million in Q4 2023, with total capital expenditures for the year reaching $11,269 million compared to $11,115 million in 2023[61] - Total line extensions capital expenditures were $1,057 million in Q4 2024, compared to $978 million in Q4 2023, with total line extensions for the year reaching $4,216 million compared to $4,015 million in 2023[61] Cash Flow and Debt - Full year 2024 free cash flow increased to $4.3 billion from $3.5 billion in the prior year, primarily due to higher Adjusted EBITDA[3][10] - Free cash flow in the fourth quarter of 2024 totaled $984 million, a decrease of $77 million compared to the fourth quarter of 2023[31] - As of December 31, 2024, total principal amount of debt was $93.8 billion, with additional liquidity of approximately $6.3 billion[32] - Long-term debt decreased to $92,134 million from $95,777 million year-over-year[54] Operational Efficiency - Operating costs decreased by 9.1% year-over-year, reflecting fewer video customers and a higher mix of lower-cost packages[21] - Monthly residential revenue per customer was $121.40 in Q4 2024, slightly down from $121.47 in Q3 2024 and up from $119.41 in Q4 2023[59] Brand and Market Strategy - Spectrum launched a new brand platform, "Life Unlimited," in September 2024, focusing on advanced network capabilities and simplified pricing strategies[5] - Charter activated 117,000 subsidized rural passings in the fourth quarter, contributing to a total of 393,000 in 2024, as part of efforts to expand Internet access to underserved communities[8]