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Broadband communications company $CHTR and $TWC today said that in connection with the previously announced $CHTR-$TWC merger, the election deadline for $TWC stockholders to elect the form of consideration they wish to receive in exchange for each of their shares of $TWC common stock will be extended to May 12, 2016.
Charter announced today that Katherine Pope has joined as SVP, Head of Original Content to head its original content efforts. $CHTR has created this new role where Pope will be looking at the creation and launch of new shows on its platform, which also includes original content partnerships with AMC and Viacom.
$CHTR expects to launch its wireless service in 2018, using the MVNO agreement inked with $VZ. The company also has an operation agreement with Comcast. The wireless service would be bundled into the Spectrum branded offering, which is expected to improve sales numbers. Charter also expects its customer net adds to improve in 2H17.
$CHTR 3Q revenues modestly up by 4% while net income decreased by 75% mainly due to depreciation and amortization expense in the quarter. Cord cutting continues to worsen in 3Q. The company lost 104,000 TV subscribers in 3Q vs. 90,000 subscribers in 2Q. Ad revenues declined 11% due to lower political revenues.
$CHTR said its subsidiaries, Charter Communications Operating and Charter Communications Operating Capital priced $2Bil in aggregate principal amount of notes. This includes $1.25Bil of senior secured notes due March 2028 and $750MM of senior secured notes due 2047. $CHTR expects to close the offering of the notes on Sept. 18, 2017.
$S, which was trying to strike a merger deal with $CHTR, swung to a quarterly profit for the first time in three years, helped by its cost-cutting efforts. Net income was $206MM or $0.05 per share in 1Q17 compared to a loss of $302MM or $0.08 per share a year ago. Revenue grew 2% to $8.16Bil, while operating expenses decreased 9% to $7Bil.
In June, $CHTR completed the rollout of Spectrum brand across the existing Time Warner Cable and Bright House residential markets. Charter also completed the switch to Spectrum brand for SMBs in July. Charter’s wireless venture continue to move forward as it plans to launch a wireless service as an MVNO on $VZ network in 2018 alongside Comcast.
Charter is now the second-biggest cable company in US behind Comcast. The company now serves about 26.8MM residence and SMB businesses. $CHTR's customer base grew by about 211,000 in 2Q. Cable operator lost 90,000 residential pay TV subscribers vs. 152,000 loss in 2Q16, or 100,000 on a pro forma basis. In 1Q17, Charter had recorded a 100,000 drop.
Cable operator $CHTR reported 44% drop in profits of $139MM from $248MM gain in 2Q16. Profits slumped due to pension curtailment gains in 2Q16 and D&A cost increase in 1Q17. Revenue grew 3.9%, on a pro forma basis, to $10.36Bil, aided by growth in Internet subscribers. Charter closed Time Warner Cable and Bright House Networks deal in 2016.
Communications firm $CHTR said its units Charter Communications Operating and Charter Communications Operating Capital closed on $1.5Bil in aggregate principal amount of notes. The notes include $1Bil in aggregate principal amount of senior secured notes due Feb. 2028, and $500MM in aggregate principal amount of senior secured notes due May 2047.
$CHTR said its subsidiaries Charter Communications Operating LLC and Charter Communications Operating Capital intend to offer senior secured notes due February 2028 and senior secured notes due 2047. The Follow-on Notes will form a part of same series as 5.375% Senior Secured Notes issued on April 20, 2017 in aggregate of $1.25Bil.
$CHTR said its subsidiaries CCO Holdings and CCO Holdings Capital plan to offer $1.5Bil of senior unsecured notes due February 2028. $CHTR plans to use the net proceeds to pay related fees and expenses and for general corporate purposes, including potential buybacks of Class A common stock or common units of Charter Communications Holdings, LLC.