By Soham Chatterjee and Jennifer Saba
Feb 21 Charter Communications Inc,
whose bid to take over Time Warner Cable Inc was
thwarted earlier this month, plans to grow its subscriber base
through more deals, its chief executive said on a call with
analysts on Friday.
Charter CEO Tom Rutledge made few remarks about the
company's failed pursuit of Time Warner Cable after having
mounted a proxy battle last week.
"Notwithstanding everything that has happened, we are still
interested in wisely acquiring subscribers through M&A when that
opportunity arises," Rutledge said.
Charter was outmaneuvered in its $37.3 billion bid to
acquire Time Warner Cable when Comcast Corp offered
Rutledge declined to comment when asked if he was worried
about the size of Comcast, already the No. 1 cable provider in
the United States, if regulators allow the Time Warner Cable
deal to go through.
Executives with satellite operators Dish Network Corp
and DirecTV voiced concern during their
earnings calls on Thursday and Friday over the competitive
landscape if the Comcast merger with Time Warner Cable is
Charter is the No. 4 U.S. cable company and is backed by
billionaire John Malone.
On Friday, it reported net income of $39 million, or 35
cents per share, for the fourth quarter, compared with a loss of
$40 million, or 41 cents per share, a year earlier. Quarterly
revenue rose 12.3 percent to $2.15 billion.
The company acquired Bresnan Broadband Holdings for $1.6
billion in February 2013, adding 670,000 homes and about 375,000
residential and business customers.
Charter shares were trading down 5.2 percent to $125.02in
The company said its adjusted earnings before interest,
taxes, depreciation and amortization rose about 3 percent to
Analysts had expected a profit of 24 cents per share on
revenue of $2.16 billion, according to Thomson Reuters I/B/E/S.
Video revenue, which accounts for about half of total
revenue, rose 12.8 percent. Internet revenue, which accounts for
more than a quarter of total revenue, rose 22.4 percent. Revenue
from sales to small and medium-size businesses and to carrier
customers rose 28.8 percent.
The company added 93,000 residential Internet customers
compared with 59,000 customers a year ago. Charter's residential
customers grew by 63,000 in the quarter, up from 24,000 in the
same period year ago.
Revenue per customer relationship rose 2 percent to $107.97.
Charter said it expects to boost spending by 19 percent to
$2.2 billion in 2014 as it digitalizes set-top boxes and invests
in its commercial business.