Charter Communications(US:CHTR)2023-07-27 16:00Financial Performance - Consolidated net income for the six months ended June 30, 2023, was $2,596 million, down from $3,097 million in 2022, representing a decrease of approximately 16.1%[93] - Charter Communications reported revenues of $13,659 million for the three months ended June 30, 2023, a slight increase from $13,598 million in the same period of 2022, and $27,312 million for the six months ended June 30, 2023, compared to $26,798 million in 2022[110] - The net income attributable to Charter shareholders for the three months ended June 30, 2023, was $1,223 million, down from $1,471 million in 2022, and for the six months, it was $2,244 million compared to $2,674 million in 2022[110] - Basic earnings per share for the three months ended June 30, 2023, were $8.15, a decrease from $8.96 in 2022, and diluted earnings per share were $8.05, down from $8.80 in 2022[110] - Total revenues increased by $61 million (0.5%) to $13,659 million for the three months ended June 30, 2023, compared to $13,598 million for the same period in 2022[178] Revenue Streams - Revenue from Internet services for the three months ended June 30, 2023, was $5.733 billion, an increase from $5.562 billion in the same period of 2022, representing a growth of 3.1%[128] - The decrease in video revenues was attributed to fewer customers and a higher mix of lower-cost video packages within the video customer base[53] - The company added 648,000 mobile lines, 77,000 Internet customers, and 17,000 residential and SMB customer relationships during the second quarter of 2023[158] - SMB revenues grew due to an increase of 37,000 SMB customers from June 30, 2022, to June 30, 2023[167] Operating Costs and Expenses - Operating costs and expenses for the three months ended June 30, 2023, were $8,305 million, up from $8,193 million in 2022, while for the six months, they totaled $16,816 million compared to $16,327 million in 2022[110] - Operating expenses increased primarily due to adjustments in job structure and pay, resulting in a $72 million increase in costs to service customers for the three months ended June 30, 2023[191] - Sales and marketing costs increased by $31 million and $97 million during the three and six months ended June 30, 2023, respectively, primarily due to higher staffing across sales channels[169] Cash Flow and Capital Expenditures - Free cash flow decreased by $991 million (59.7%) to $668 million for the three months ended June 30, 2023, compared to $1,659 million for the same period in 2022[200] - Capital expenditures were $2.8 billion and $5.3 billion for the three and six months ended June 30, 2023, respectively, up from $2.2 billion and $4.1 billion in 2022[220] - Net cash used in investing activities was $5.6 billion for the six months ended June 30, 2023, compared to $4.1 billion in 2022[237] Shareholder Equity and Debt - Total shareholders' equity rose to $14,027 million from $12,549 million, an increase of about 11.8%[92] - The company had total long-term debt of $97,760 million as of June 30, 2023, compared to $97,970 million as of December 31, 2022[118] - Long-term debt borrowings totaled $11,048 million, while repayments were $10,735 million, resulting in a net increase in long-term debt[93] - The principal amount of Charter's debt as of June 30, 2023, was $97.8 billion, consisting of various types of loans and notes[198] Stock and Share Buybacks - Charter purchased approximately 1.0 million shares of Class A common stock for approximately $324 million during the three months ended June 30, 2023[239] - Share buybacks for the three months ended June 30, 2023, totaled 954,330 shares, compared to 7,264,833 shares in the same period of 2022[122] - The company expects to continue buying back its common stock consistent with its leverage target range, depending on market conditions[199] Tax and Other Expenses - Income tax expense recognized was $444 million and $818 million for the three and six months ended June 30, 2023, compared to $489 million and $834 million for the same periods in 2022, indicating a decrease in tax expense due to lower pretax income[64] - The company reported a decrease in property tax and insurance expense during the three and six months ended June 30, 2023, due to favorable developments on prior year workers' compensation claims[54] Internal Controls and Financial Reporting - The company has not experienced any material changes in its internal control over financial reporting that could affect its financial reporting[41]