Charter Communications Inc (CQD.DE) delivered a stable QQ2 2024 performance with modest year-on-year and quarter-on-quarter growth in revenue and earnings, underpinned by a strong EBITDA contribution and sustained free cash flow generation. Revenue of $13.685B rose roughly 0.2% year-over-year and 0.04% quarter-over-quarter, supported by resilient demand for broadband and related services. EBITDA stood at $5.513B with an EBITDA margin of approximately 40.3%, while operating income reached $3.342B with a margin near 24.4%. Net income was $1.231B and diluted EPS was $8.49, reflecting a favorable mix of continued cost discipline and favorable operating leverage against a backdrop of elevated capital expenditures.
Cash flow remained a key strength, with operating cash flow of $3.853B and free cash flow of about $1.0B. Capital expenditures totaled $2.853B, highlighting Charter’s continued investment in network and IT capabilities. The balance sheet shows large total assets ($148.6B) and substantial non-current liabilities (primarily long-term debt of $97.6B), resulting in a high debt-to-capitalization profile and a net debt position of ~$96.96B. Despite leverage, cash generation supports deleveraging potential and ongoing capital return considerations, though near-term deleveraging will depend on cash flow retention and capex discipline.
From a valuation standpoint, the stock trades at a P/E of roughly 9.9x and an EV/EBITDA of about 26.4x, signaling a premium multiple reflective of Charter’s asset footprint and cash-generative capacity, but also signaling sensitivity to leverage and capex intensity. Absent an earnings call transcript in the provided data, management commentary could not be incorporated into the forward-looking view. Investors should monitor ARPU trends, subscriber dynamics, capex cadence, debt maturity profiles, and potential asset monetization or efficiency programs as levers for deleveraging over the medium term.