Charter Communications Reports 0.4% Revenue Growth and Increased Net Income in Q1 2025

Charter Communications, Inc. reported a slight increase in revenue for the first quarter of 2025, generating $13.735 billion compared to $13.679 billion in the same period last year, marking a 0.4% growth. The company’s net income attributable to shareholders rose to $1.217 billion, up from $1.106 billion in the prior year, resulting in basic earnings per share of $8.59, an increase from $7.66. Adjusted EBITDA also saw a 4.8% increase, reaching $5.763 billion, driven by higher mobile line growth and improved average revenue per customer, despite a decline in overall customer numbers.

In terms of operational metrics, Charter added 514,000 mobile lines during the quarter, while the losses in Internet and video customers improved compared to the previous year. The company reported approximately 29.16 million residential customers, a decrease from 29.8 million a year earlier, with Internet customers at 30.02 million, down from 30.52 million. Video customers decreased to 12.71 million from 13.72 million, while mobile lines increased significantly from 8.25 million to 10.4 million. The company attributed these changes to a new pricing and packaging strategy launched in September 2024, which aimed to enhance customer experience and drive growth.

Charter's operating costs decreased to $10.498 billion from $10.548 billion, primarily due to lower programming costs and labor expenses. The company spent $468 million on its subsidized rural construction initiative, activating approximately 89,000 rural passings. Capital expenditures for the quarter were $2.399 billion, down from $2.791 billion in the previous year, reflecting a strategic focus on network upgrades and expansions. The company also repurchased $300 million worth of its Class A common stock from Liberty Broadband during the quarter.

Looking ahead, Charter remains focused on expanding its network capabilities and enhancing customer service. The company plans to continue investing in its rural broadband construction initiative and aims to offer symmetrical multi-gigabit speeds across its footprint. Charter's management expressed confidence in its ability to maintain revenue growth and improve customer retention through ongoing product innovations and strategic pricing adjustments. The company anticipates that its free cash flow will support further investments and potential acquisitions, while also managing its debt levels within targeted leverage ratios.