By Ben Fox Rubin
Charter Communications Inc.'s (CHTR) first-quarter loss narrowed
as the broadband-communications operator's video and Internet
revenue increased, though telephone revenue continued to sink.
In March, John Malone's Liberty Media Corp. (LMCA, LMCB) agreed
to buy about 27% of Charter Communications for about $2.62 billion,
helping Liberty to re-establish itself as a force in the cable-TV
industry.
The purchase, completed this month, is Mr. Malone's first big
investment in a cable operator in the continental U.S. since he
sold Tele-Communications Inc. to AT&T Inc. (T) for $48 billion
in 1999.
Separately, in February Charter Communications agreed to buy
Cablevision Systems Corp.'s (CVC) western U.S. cable systems, known
as Optimum West, for a little more than $1.6 billion in cash. The
assets appear to fit well with Charter's general business model of
focusing on smaller and mid-sized communities.
Charter Communications reported a loss of $42 million, or 42
cents a share, compared with a year-earlier loss of $94 million, or
95 cents a share. Revenue grew 4.9% to $1.92 billion.
Analysts polled by Thomson Reuters most recently projected a
loss of 61 cents a share on revenue of $1.9 billion.
Total operating expenses rose 6.1%.
The video segment, the company's largest revenue contributor,
saw revenue rise 6.8%. Internet revenue was up 11% and telephone
revenue shrank 21%. Commercial revenue was up 20%.
Shares closed Monday at $105.03 and were inactive premarket. The
stock has risen 38% so far this year.
Write to Ben Fox Rubin at ben.rubin@dowjones.com.
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