Charter’s first quarter saw a positive market reaction despite flat sales and a minor adjusted profit miss. Management highlighted robust growth in Spectrum Mobile lines and pointed to improved customer retention driven by bundled offerings and a pivot toward value-based pricing. CEO Chris Winfrey emphasized, “Our Internet customer results improved year over year as we continue to compete well and with the Affordable Connectivity Program headwind now behind us.” The company credited its investments in service quality, technology, and employee initiatives for driving cost efficiencies and supporting EBITDA growth.
Is now the time to buy CHTR? Find out in our full research report (it’s free).
Charter (CHTR) Q1 CY2025 Highlights:
- Revenue: $13.74 billion vs analyst estimates of $13.68 billion (flat year on year, in line)
- Adjusted EPS: $8.42 vs analyst expectations of $8.59 (2% miss)
- Adjusted EBITDA: $5.76 billion vs analyst estimates of $5.57 billion (42% margin, 3.5% beat)
- Operating Margin: 23.6%, in line with the same quarter last year
- Internet Subscribers: 30.02 million, down 496,000 year on year
- Market Capitalization: $53.37 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Charter’s Q1 Earnings Call
- Craig Moffett (MoffettNathanson) asked about churn benefits in converged households and mobile’s impact on broadband. CEO Chris Winfrey described lower churn and higher satisfaction, but cautioned against overestimating these benefits due to selection effects among loyal customers.
- John Hodulik (UBS) pressed for details on the Seamless Entertainment rollout and expected impact on KPIs. Winfrey outlined the phased app integration and digital storefront launch, noting that further improvement in video and broadband trends is anticipated as marketing ramps up.
- Ben Swinburne (Morgan Stanley) questioned the sustainability of Charter’s promotional roll-off and bundling strategy in a price-focused market. Winfrey emphasized the importance of product quality, persistent value, and long-term price locks, while CFO Jessica Fischer reiterated that operating expense trends are expected to remain stable.
- Jonathan Chaplin (New Street Research) asked about early retention trends post-life unlimited launch and NPS improvement. Winfrey confirmed early tenure customer retention is up, with full benefits expected to compound in years two and beyond as legacy customers migrate to new bundles.
- Jim Schneider (Goldman Sachs) inquired about consumer trade-down, credit risk, and macro headwinds. Winfrey reported stable sales and churn, minimal credit stress, and highlighted Charter’s value proposition as a buffer in recessionary environments.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the adoption and effectiveness of the Seamless Entertainment digital storefront and app integrations, (2) the impact of network upgrades and rural expansion on customer growth and churn, and (3) the pace at which legacy customers migrate to new bundled offerings. We will also monitor how macroeconomic trends and competitive dynamics influence broadband and mobile subscriber trends.
Charter currently trades at $386.37, up from $334.97 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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