Charter Revenue Growth Drievn By Internet, Phone


Charter Communications revenue was up in its second quarter due to solid growth from its high-speed internet and telephone product lines.

 Charter’s revenue grew 8.4% in the second quarter to $1.5 billion from $1.4 billion in Q2 2006. The rise came on the back of surging high-speed internet (HSI) and phone segments. HSI revenues were up $49 million, or 19%, in the quarter to $310 million while phone was up $51 million, or 176%, to $80 million. Charter’s video revenues were up less than 1% to $859 million from $853 million a year ago.

 The company’s earnings before interest, tax, depreciation and amortization (EBITDA) were up 8.9% to $540 million while its EBITDA margin was flat versus Q2 2006 at 36%.

 Charter’s net loss narrowed to $360 million, or $0.98 per share, in the quarter compared to Q2 2006 which was $382 million, or $1.20.

 Charter’s total customer relationships dipped by 27,100 to 5.7 million on a pro forma basis from the first quarter of this year on a decline in video customers. However, revenue generating units (RGUs) increased by 166,300 to 11.5 million. The rise in RGUs was led by telephone which increased by 127,700 customers to 700,300, and HSI which rose by 60,300 customers to 2.58 million.

 The penetration of HSI to Charter’s home passed ticked up to 24% from 23% in the first quarter and 21% a year ago. The average revenue per unit (ARPU) for HSI was up as well, to $40.45 from $40.04 and $38.30 respectively.

 Telephone penetration was at 9% versus 8% in Q1 and 6% a year ago. ARPU was flat from Q1 at $42.06 and down from $43.12 in Q2 2006.