Telecom Giants’ Revenue Show Major Leap

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One of the major internet and cable providers, Charter Communications®, released a report last week announcing its considerable gain of revenue in the closing quarter of the previous year as well as for the whole year. This is attributed to the acquisition of two other major cable providers two years ago, in what was said to be one of the best cable deals of the time.

The Report

The reports suggested a quarterly rise of 6 percent to $11.2 billion. The profit summed up to $296 million, in comparison to $9.5 billion during 2017. The huge difference between the profits of the two years is caused by the company’s deferred tax liability, which was initiated by the US tax reform implemented in the same year.

The revenue figures for 2018 touched $43.6 billion, which was 5 percent higher than the previous year. Furthermore, the annual profits were at $1.2 billion. At the same time last year, this was $9.9 billion.

It has been three years since the cable giant acquired the other major players Bright House Networks and Time Warner Cable®. The company’s CEO and Chairman, Tom Rutledge, said that the long drawn process of integration of the three companies has reached completion.

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“We put three very large companies together in order to create a new company with a larger and more concentrated footprint, giving us the scale to innovate and grow faster,” Rutledge commented at the earnings event. “We’re beginning to benefit from that strategy in all the ways we expected.”

This surge in revenues has also triggered a 14 percent jump in company shares. It came to a close at $331.

Customer Base

Charter Communications® serves about 1.8 million small and medium sized businesses and 26.2 million residences. The company’s customer base also showed a rise of 3 percent from the previous year. Although the company’s video customers showed a drop of 2 percent from 16 million, its internet subscribers rose by 5 percent to 23.6 million. Further, its voice business customers declined by 3 percent from 10 million last year.

The company launched its mobile platform, which can now be utilized by its Spectrum® branded internet service customers. Charter Communications®, meanwhile, invited a few controversies last year in the New York State, with the lawsuit from New York State Attorney General’s office for denying fast internet that was promised to the customers. This was settled later for $174 million.

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