Internet customer loss of 72,000 during Q1, marking a notable decline in growth.
Addition of approximately 500,000 Spectrum Mobile lines and close to 2.3 million lines year-over-year.
Total mobile lines now exceed 8.2 million.
Revenue remained relatively flat during the quarter.
Adjusted EBITDA grew by 2.8% in the quarter.
Net income attributable to Charter shareholders was $1.1 billion, up from $1 billion the previous year.
Future Guidance
Capital expenditures for 2024 are projected to be between $12.2 billion and $12.4 billion.
Expected build-out to include approximately 450,000 new subsidized rural passings in 2024.
RDOF build completion anticipated by the end of 2026.
Expect to continue reducing net debt to adjusted EBITDA ratio towards the middle of the 4 to 4.5x target range by year-end.
EBITDA growth expected in 2024 despite short-term challenges, including the potential discontinuation of the Affordable Connectivity Program (ACP).
Trends, Market Conditions, Sentiment
The loss of Internet customers is attributed to a combination of low move activity, increased competition, and the discontinuation of low-income connects from the ACP.
Despite a relatively flat revenue, growth in mobile shows promising signs for future financial and customer growth.
The rollout of new technologies such as 300 meg, 500 meg, and 1 gig symmetrical speeds, along with distributed access architecture technology, emphasizes Charter’s focus on network enhancement.
Plans for network evolution to offer speeds up to 10 by 1 gigabit per second and fiber on demand by 2026 highlight a long-term strategy for growth and market competitiveness.
The discontinuation of the ACP could have short-term impacts on customer growth and ARPU, but strategies are in place to mitigate these effects.
Video business remains under pressure but is evolving with the integration of direct-to-consumer services and modern user experiences to provide value and choice to customers.
Ongoing challenges from increased competition, particularly in broadband from both fixed wireless and wireline overbuilders.
Notable Quotes
”We have a long runway for customer and financial growth with the nation’s fastest mobile service at incredible value.” - Christopher Winfrey
”Our mobile offering also continues to evolve and improve.” - Christopher Winfrey
”The success of our Spectrum One offering has shown that we can create long-term converged connectivity customers by saving consumers hundreds or even thousands of dollars on their mobile bill.” - Jessica Fischer
”We’re growing a unique converged product at a rapid pace. We can grow EBITDA through a competitive investment cycle.” - Christopher Winfrey
”Despite these short-term challenges, we are competing well…and we’re focused on driving healthy EBITDA growth in 2024.” - Jessica Fischer
