Charter Communications Inc.'s profit topped estimates in the latest quarter on continued revenue growth across its segments as it works to integrate recently acquired Time Warner Cable.
Charter earlier this year completed its roughly $60 billion acquisition of Time Warner Cable to form the second-biggest broadband provider in the U.S., after Comcast Corp., and the third-largest pay-TV company, trailing AT&T Inc. and Comcast. As part of the transaction, Charter also acquired smaller operator Bright House Networks.
On Thursday, Chief Executive Tom Rutledge said the integration of Time Warner Cable and Bright House was on track, and Charter is beginning to implement the Spectrum brand, "with better products, pricing and packaging."
The latest quarter includes Time Warner Cable and Bright House results. In addition to its actual third-quarter results, which are skewed in comparison to the prior year because of the transactions, the company also provided results on a pro-forma basis, which give effect to the acquisitions as if they had closed at the beginning of the year-ago period.
During the quarter, revenue from video?the largest contributor to the top line?rose 3% to $4.09 billion on a pro-forma basis, while internet revenue shot up 13% to $3.2 billion. Voice revenue also rose 3%, to $728 million.
Over all, on a reported basis, Charter reported a profit of $189 million, or 69 cents a share, compared with $54 million, or 53 cents a share a year ago. Revenue more than quadrupled.
On a pro-forma basis, revenue rose 7.4% to $10.04 billion, driven by residential revenue growth of 6.7% and commercial revenue growth of 12.1%. Profit climbed sharply.
Analysts were looking for 63 cents a share on $10 billion in revenue.
Shares in the company, inactive premarket, have risen 25% so far this year.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
November 03, 2016 09:15 ET (13:15 GMT)
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