Charter Communications Posts Q4 Revenue Rise and Wider Loss

Cable operator Charter Communications posted a 10% revenue gain yesterday, but its Q4 loss widened on a $54 million rise in interest payments and tax expenditures. The company, which is run by Microsoft co-founder Paul Allen, reported a loss after paying preferred dividends of $396 million (-$1.08/share) in Q4 versus a year-ago loss of $336 million (-$1.06/share). Analysts were expecting a loss of $0.80/share. Charter plans to offset this loss by bundling TV, phone and Internet services, which is expected to bring in new customers and boost profit margins. "Bundling is the key to driving growth and the addition of phone (service) is the key to bundling success," said CEO Neil Smit. Revenue rose to $1.41 billion from $1.29 billion a year ago, in line with expectations, on high-speed Internet and telephone service demand. Charter's customer base has grown 30% since the end of September, but its expenses also grew 13% to $910 million. For the full year, the company's loss grew to $1.37 billion (-$4.13/share) from a loss of $967 million (-$3.13 a share) a year ago. Revenue rose 9% to $5.5 billion.

Sources: Press Release, MoneyCentral, Wall Street Journal, Chron.com
Commentary: Despite Upgrades, Charter Communications May Be Due For a Breather • Charter Shares Reach 52-Week High on Comcast CFO Optimism • Charter Communications: Overbought, Undervalued
Stocks/ETFs to watch: Charter Communications, Inc. (CHTR). Competitors: Comcast Corp. (CMCSA). ETFs: iShares Russell Microcap Index (IWC)

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