Charter Communications (CHTR) Q4 2024 earnings summary

Executive summary

• Full year 2024 revenue increased 0.9% to $55.1B, with Adjusted EBITDA up 3.1% to $22.6B, driven by mobile growth, cost efficiencies, and political advertising.

• Spectrum Mobile added over 2 million lines in 2024, reaching 9.9M total, maintaining fastest growth in the U.S.; total customer relationships declined 2.0%.

• Managed end of Affordable Connectivity Program (ACP), retaining 90% of former ACP customers, but internet subscribers declined 1.7%.

• Faced significant natural disasters (hurricanes, wildfires), impacting subscriber and financial results, with $37M in customer credits issued.

• Continued network expansion, rural initiatives, and brand refresh under Life Unlimited, with new pricing and packaging showing positive early results.

Financial highlights

• Q4 2024 revenue grew 1.6% year-over-year to $13.9B; residential revenue flat, commercial revenue up 1.9%, enterprise revenue up 4.4%.

• Q4 Adjusted EBITDA rose 3.4% to $5.8B; full-year Adjusted EBITDA was $22.6B, up 3.1%.

• Q4 net income attributable to shareholders was $1.5B, up 38.6% year-over-year; full-year net income reached $5.1B.

• Q4 Free Cash Flow was $984M, down $80M year-over-year due to higher CapEx, taxes, and interest; full-year free cash flow was $4.3B.

• 2024 capital expenditures totaled $11.3B, up 1.4% year-over-year.

Outlook and guidance

• 2025 capital expenditures expected at ~$12B, including $4.2B for line extensions and $1.5B for network evolution.

• Plan to grow Adjusted EBITDA in 2025 despite headwinds from lack of political advertising and full-year ACP impact.

• Expect rural passings growth of ~450,000 in 2025, the largest year yet.

• Cash tax payments for 2025 projected between $1.6B and $2B.

• Free cash flow growth anticipated post one-time investment cycle, with continued focus on network expansion and product value.