Charter Communications Plunges Deeper into the Red

02 November 2001

Broadband communications giant Charter Communications on Thursday reported deepened Q3 losses, bucking double digit growth both in cash flow and revenue.

Net losses for the three months to September 30 dived to $317.4 million or $1.08 a share, against a loss of $210 million (93 cents) in the year-on-year quarter. The result, however, bettered the prognostications of analysts whose consensus prediction was a per-share loss of $1.09.

But gloom was not all-pervasive. Revenue rose year-on-year by 24% from $839 million to $1.04 billion, while cash flow – an accepted indicator of cable companies’ financial health – soared 17% to $467.5 million. Operating cash flow rose 10%.

Stated newly appointed president and chief executive Carl Vogel: “Despite the weakening economy, Charter continues to experience strong demand for its digital video service. The addition of advanced broadband products like video on demand and Wink's Enhanced Broadcasting service continue to enhance customer satisfaction and provide the glue necessary to retain digital customers.”

Digital cable customers numbered around 1.95 million at the end of September, claimed Charter, which is aiming for 2.15 million homes by the end of 2001 with over 2.2m taking video on demand services.

News source: (USA)