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Charter Communications, the US cable television and internet provider, disclosed on Thursday an increase in quarterly revenues that topped Wall Street estimates.
Revenues boomed by more than four-fold from the previous year to $10.28bn in the fourth quarter, driven by the closing of its deal in May 2016 to buy Time Warner Cable. On a pro forma basis that combines Charters’s results with Time Warner’s in the previous year’s period, sales were up by 7.2 per cent.
Wall Street economists had forecast sales of $10.23bn.
Net income rose to $454m, or $1.67 a share, from $130m, or 48 cents a share, on a pro forma basis.
Charter’s shares rose by 1 per cent in pre-market trading, which would add to a year-to-date gain as of Wednesday’s close of almost 13 per cent.
The group posted rapid growth in revenues from its internet provider business, which were up by 13.3 per cent on a pro-forma basis to $3.3bn. Cable video grew at a slower pace of 1.9 per cent to $4.1bn.
Cable companies have been working to fight the rise of “cord cutting” where consumers stream video over the internet rather than the the more lucrative television offering.
“”In 2017, we remain focused on applying our growth-oriented operating strategy across our new footprints, driving more customer satisfaction, growth, and shareholder value,” said Tom Rutledge, Charter’s chief executive.
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