Charter Communications Inc.'s (CHTR) third-quarter loss narrowed
as the broadband communications company benefited from revenue
growth and lower interest and tax expenses.
The fourth-largest cable operator by video subscribers also
reported that its rate of residential video-subscriber losses
continued to slow: The company lost 27,000 customers in the latest
quarter compared with 71,000 a year earlier. The company attributed
the improving trend to a more competitive video product, packaging
of advanced services and new selling methods.
Meanwhile, Charter has recorded growth in broadband and
telephone customer additions as it continued to emphasize selling
"triple play" bundles.
Chief Executive Tom Rutledge had previously said he expects
consolidation in the cable industry ultimately will leave the
sector with two major players. He has said that being bigger would
help cable companies control costs, giving them more leverage over
media companies that supply TV programming, and would put them on
stronger footing to invest in new technologies.
Charter and its largest shareholder, Liberty Media Corp. (LMCA,
LMCB), have attempted to interest Time Warner Cable Inc. (TWC) in a
merger. However, Time Warner Cable so far has rebuffed Charter and
Liberty's approaches.
Charter Communications reported a loss of $70 million, or 68
cents a share, compared with a year-earlier loss of $87 million, or
87 cents a share.
Revenue increased 13% to $2.12 billion, driven by the July
acquisition of Cablevision Systems Corp.'s (CVC) Bresnan Broadband
Holdings LLC. When considering sales as if Charter owned Bresnan
for the entire year, the growth was 5.4%. Video services and
Internet revenue growth continued to offset telephone revenue
declines.
Analysts polled by Thomson Reuters recently expected per-share
earnings of 10 cents and revenue of $2.11 billion.
Interest expenses declined 6.6% while tax costs were off by
17%.
Shares closed Monday at $135.77 and were inactive in recent
premarket trading. The stock is up 78% this year.
Write to Tess Stynes at tess.stynes@wsj.com
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