Charter revenues and profits continue to grow
Updated 6:55 pm, Thursday, February 16, 2017
STAMFORD — Cable provider Charter Communications recorded another quarter of both growing revenues and profits following its 2016 acquisitions, according to the company’s latest earnings report released Thursday. But executives remain quiet about the possibility of another blockbuster deal.
Fourth-quarter revenues totaled about $10.3 billion, compared with a total of about $2.5 billion in the fourth quarter a year earlier. The $454 million profit in the fourth quarter of 2016 compared with a loss of $122 million in the same period in 2015.
Charter’s growing bottom line largely reflects its expansion since closing last May on a $55 billion acquisition of Time Warner Cable and a $10 billion purchase of Bright House Networks. Those deals made Charter the No. 2 cable carrier in the country after Philadelphia-based Comcast.
“We’ve been managing the complex process of integrating the three different companies, with over 90,000 employees and a network consisting of nearly 700,000 miles of physical infrastructure and annual revenue in excess of $40 billion,” Tom Rutledge, Charter’s CEO and chairman, said during a conference call Thursday morning. “Despite the complexity, our integration is going well and as expected.”
Although Charter is only nine months removed from the closing of its latest merger, reports have circulated in recent weeks of the Stamford-based company potentially being acquired by Verizon.
When asked a question during Thursday’s call about prospective mergers and acquisitions, Rutledge said: “We don’t speculate on M&A generally, so I don’t really know what to say.”
Charter now serves about 25 million residences and about 1.4 million small- and medium-sized businesses, according to company data. In the past quarter, Charter grew its residential customer base by about 250,000 and its contingent of small and medium-sized businesses by some 37,000.
Within the next two years, Charter wants to complete the conversion of the existing Time Warner Cable and Bright House markets to all-digital systems. The upgrades would support more advanced products and services, including two-way digital set-tops that offer better picture quality, interactive programming guides and on-demand video on all TVs in Charter homes, according to company executives.
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