Charter Communications(US:CHTR)2022-10-27 16:00Financial Performance - Charter Communications reported revenues of $13.55 billion for Q3 2022, a 3.1% increase from $13.15 billion in Q3 2021[26] - Operating costs and expenses for Q3 2022 were $8.25 billion, up from $7.96 billion in Q3 2021, reflecting a 3.6% increase[26] - Net income attributable to Charter shareholders for Q3 2022 was $1.19 billion, compared to $1.22 billion in Q3 2021, a decrease of 2.6%[26] - Basic earnings per share for Q3 2022 were $7.51, an increase from $6.69 in Q3 2021, representing a growth of 12.3%[26] - Consolidated net income for the nine months ended September 30, 2022, was $4,464 million, an increase from $3,486 million in the same period of 2021[30] - The company reported a net income attributable to shareholders of $1,185 million for the three months ended September 30, 2022, compared to $1,217 million in 2021[114] - Diluted earnings per common share for the nine months ended September 30, 2022, was $23.06, compared to $15.78 for the same period in 2021, reflecting a 46.5% increase[90] Assets and Liabilities - Total assets as of September 30, 2022, were $143.67 billion, compared to $142.49 billion as of December 31, 2021, showing a slight increase[25] - Long-term debt increased to $95.51 billion as of September 30, 2022, from $88.56 billion at the end of 2021, indicating a rise of 7.3%[25] - Charter's total current liabilities were $11.60 billion as of September 30, 2022, down from $12.46 billion at the end of 2021, a decrease of 6.9%[25] - Total shareholders' equity as of September 30, 2022, was $12,350 million, down from $21,526 million as of September 30, 2021[29] - The accumulated deficit as of September 30, 2022, was $(8,816) million, an increase from $(2,151) million as of September 30, 2021[29] Cash Flow and Capital Expenditures - Cash flows from operating activities for the nine months ended September 30, 2022, were $11,138 million, compared to $12,013 million in 2021[30] - Free cash flow for the three months ended September 30, 2022, was $1.5 billion, down from $2.5 billion in the same period of 2021, and for the nine months it was $5.0 billion compared to $6.4 billion[152][161] - Capital expenditures increased to $2.4 billion in Q3 2022 from $1.9 billion in Q3 2021, and for the nine months ended September 30, 2022, it was $6.5 billion compared to $5.6 billion in the same period of 2021[170][174] Revenue Streams - Internet revenue for the three months ended September 30, 2022, was $5.57 billion, up from $5.36 billion in 2021, reflecting a year-over-year increase of 3.9%[70] - Spectrum-branded mobile services generated $750 million in revenue for Q3 2022, compared to $535 million in Q3 2021, indicating a 40.2% year-over-year increase[104] - SMB revenues increased by $36 million for the three months ended September 30, 2022, compared to the same period in 2021, driven by a growth of 69,000 SMB customers[121] - Advertising sales revenues rose by $90 million during the three months ended September 30, 2022, primarily due to an increase in political revenue[123] Customer Metrics - The total number of customer relationships increased to 32.14 million as of September 30, 2022, from 31.95 million a year earlier, marking a growth of 0.6%[109] - The company added 396,000 mobile lines and 75,000 Internet customers in Q3 2022[103] - The company experienced a loss of 645,000 residential video customers from September 30, 2021, to September 30, 2022, impacting video revenues[117] - As of September 30, 2022, the company had approximately 151,700 customers over 60 days past due, up from 119,200 in 2021, indicating a significant increase in overdue accounts[111] Debt and Financing - The company issued $1.5 billion of 6.375% senior unsecured notes due September 2029, with proceeds used for general corporate purposes[49] - The principal amount of the company's debt as of September 30, 2022, was $96.8 billion, consisting of $13.4 billion of credit facility debt, $56.7 billion of investment grade senior secured notes, and $26.7 billion of high-yield senior unsecured notes[151] - Long-term debt borrowings for the nine months ended September 30, 2022, amounted to $21,528 million, up from $15,263 million in 2021[30] Operational Costs - Programming costs for the three months ended September 30, 2022, were approximately $2.9 billion, representing 35% of total operating costs, compared to $3.0 billion and 37% in the same period of 2021[128] - Costs to service customers increased by $83 million and $271 million during the three and nine months ended September 30, 2022, respectively, primarily due to higher bad debt and fuel costs[130] - Marketing expenses rose by $73 million and $213 million during the three and nine months ended September 30, 2022, respectively, driven by higher labor costs and staffing levels[131] Corporate Governance and Compliance - Charter's Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures were effective as of the end of the reporting period[179] - There was no change in internal control over financial reporting that materially affected the reporting during the quarter ended September 30, 2022[181] - Charter's management evaluated the effectiveness of its disclosure controls and procedures, providing reasonable assurances for compliance with SEC rules[180]