Monday, cable operator and broadband communications provider Charter Communications, Inc.(CHTRQ.PK) reported for the third quarter a wider loss from a year ago on recording of a huge charge related to impairment of franchises. The company's revenues increased year-on-year.
The company posted a wider net loss attributable to Charter shareholders of $1.035 billion or $2.73 per share, compared to $322 million $0.86 per share for the year ago period.
For the quarter, the company recorded impairment of franchises amounting to $2.854 billion. The company noted that the impact of the impairment on net loss was partially offset by a $625 million tax benefit.
Quarterly revenues increased to $1.693 billion from $1.636 billion in the year ago quarter.
Neil Smit, president and chief executive officer, said, "Third quarter and year to date revenue and adjusted EBITDA increases reflect continued growth of our high-speed Internet and telephone businesses, both residential and commercial."
The company said its revenues for the quarter under review grew year-on-year 3.8% on a pro forma basis and 3.5% on an actual basis, as a result of telephone, HSI and commercial revenue growth.
Telephone revenues rose 27.1% to $183 million, while HSI revenues increased 8.5% to $371 million, compared to the same period last year. Commercial revenues was up 13% at $113 million compared to the year ago period.
Video revenues slipped slightly to $861 million from $867 million last year, while advertising sales revenues declined 20% to $64 million from $80 million a year ago.
Operating costs and expenses rose to $1.087 billion for the quarter, up 1.3% from $1.073 billion in the prior year period.
Year-to-date, net loss applicable to Charter shareholders widened to $1.352 billion or $3.57 per share from $955 million or $2.57 per share in the corresponding period last year. Revenues for the nine-month period increased 4.6% to $5.045 billion from $4.823 billion a year ago.
Additionally, the company said on October 15, 2009, the judge overseeing Charter's Chapter 11 petitions indicated that he will confirm Charter's restructuring plan and issue a confirmation order within the next several weeks. The company expects to emerge from Chapter 11 shortly thereafter.
CHTRQ.PK is trading at $0.0210, down $0.00 or 1.43%, on a volume of about 888 thousand shares.
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