Charter Communications(US:CHTR)2025-10-31 11:01Financial Performance - Revenues for Q3 2025 were $13,672 million, a slight decrease of 0.9% compared to $13,795 million in Q3 2024[15] - Operating income for Q3 2025 was $3,131 million, down 6.1% from $3,335 million in Q3 2024[15] - Consolidated net income attributable to Charter shareholders for Q3 2025 was $1,137 million, a decrease of 11.1% from $1,280 million in Q3 2024[15] - Basic earnings per share for Q3 2025 were $8.50, down from $8.99 in Q3 2024, representing a decline of 5.5%[15] - Adjusted EBITDA for the same period was $5,561 million, down 1.5% from $5,647 million in 2024[85] - Consolidated net income for the nine months ended September 30, 2025, was $4,220 million, a slight increase from $4,177 million in 2024[22] Assets and Liabilities - Total current assets increased to $4,867 million in Q3 2025 from $4,233 million in Q4 2024, reflecting a growth of 15.0%[13] - Long-term debt rose to $94,413 million in Q3 2025, up from $92,134 million in Q4 2024, indicating an increase of 2.5%[13] - Total shareholders' equity decreased to $19,588 million in Q3 2025 from $19,707 million in Q4 2024, a decline of 0.6%[13] - Total debt as of September 30, 2025, was $95,023 million, up from $93,779 million as of December 31, 2024[40] - The accumulated deficit improved to $(4,095) million in Q3 2025 from $(7,750) million in Q4 2024, showing a reduction of 47.3%[13] Cash Flow and Investments - Net cash flows from operating activities increased to $12,316 million in 2025, compared to $10,970 million in 2024, reflecting a growth of approximately 12.2%[22] - The company reported net cash flows from investing activities of $(8,582) million in 2025, compared to $(8,075) million in 2024, indicating an increase in investment outflows[22] - Cash paid for interest in the nine months ended September 30, 2025, was $3,610 million, down from $3,812 million in 2024[22] - Free cash flow was $1.6 billion and $4.2 billion for the three and nine months ended September 30, 2025, compared to $1.6 billion and $3.3 billion for the same periods in 2024[120] Revenue Breakdown - Internet revenue increased to $5.971 billion in Q3 2025 from $5.872 billion in Q3 2024, while mobile service revenue rose to $954 million from $801 million[58] - Video revenues decreased by 9.3% to $3,388 million for the three months ended September 30, 2025, due to a decline in average residential video customers[95] - Voice revenues fell by 7.9% to $332 million for the three months ended September 30, 2025, with a decrease of 928,000 residential wireline voice customers[96] - Advertising sales revenues decreased by $96 million and $173 million for the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to a decline in political, national, and local ad revenue[99] Shareholder Activities - Charter repurchased 7,298,058 shares of Class A common stock for $2.099 billion in the three months ended September 30, 2025, compared to 695,494 shares for $218 million in the same period of 2024[45] - The company had remaining board authority to purchase an additional $252 million of Charter's Class A common stock as of September 30, 2025[46] - Charter plans to repurchase shares of its Class A common stock from Liberty Broadband, with monthly repurchases set at a minimum of $100 million[124] Capital Expenditures - Capital expenditures were $3.1 billion and $8.3 billion for the three and nine months ended September 30, 2025, respectively, compared to $2.6 billion and $8.2 billion in the same periods of 2024[142] - Customer premise equipment expenditures rose to $656 million in Q3 2025, up 64% from $400 million in Q3 2024[145] - The subsidized rural construction initiative accounted for $582 million in capital expenditures for Q3 2025, consistent with $581 million in Q3 2024[145] Strategic Transactions - Charter will pay $3.5 billion in cash to Cox Enterprises as part of the acquisition of certain subsidiaries, with an additional $500 million in cash and $6.0 billion in convertible preferred units issued[29] - The Cox Transactions will result in Charter assuming approximately $12.4 billion in outstanding net debt and finance leases[79] - Charter expects to incur additional debt to fund the $4.0 billion cash consideration required in the Cox Transactions and will assume Cox Communications' approximately $12.4 billion of net debt[174] Compliance and Reporting - The company is committed to compliance with the Sarbanes-Oxley Act, as evidenced by certifications from the CEO and CFO[32.1][32.2] - The financial information is formatted in iXBRL, indicating a focus on modern reporting standards and transparency[101] - The quarterly report highlights the company's performance metrics, which are crucial for investor analysis and decision-making[101]