Charter Communications 1st-Quarter Loss Narrows on Revenue Growth

   By Ben Fox Rubin 
 

Charter Communications Inc.'s (CHTR) first-quarter loss narrowed as the broadband-communications operator's video and Internet revenue increased, though telephone revenue continued to sink.

In March, John Malone's Liberty Media Corp. (LMCA, LMCB) agreed to buy about 27% of Charter Communications for about $2.62 billion, helping Liberty to re-establish itself as a force in the cable-TV industry.

The purchase, completed this month, is Mr. Malone's first big investment in a cable operator in the continental U.S. since he sold Tele-Communications Inc. to AT&T Inc. (T) for $48 billion in 1999.

Separately, in February Charter Communications agreed to buy Cablevision Systems Corp.'s (CVC) western U.S. cable systems, known as Optimum West, for a little more than $1.6 billion in cash. The assets appear to fit well with Charter's general business model of focusing on smaller and mid-sized communities.

Charter Communications reported a loss of $42 million, or 42 cents a share, compared with a year-earlier loss of $94 million, or 95 cents a share. Revenue grew 4.9% to $1.92 billion.

Analysts polled by Thomson Reuters most recently projected a loss of 61 cents a share on revenue of $1.9 billion.

Total operating expenses rose 6.1%.

The video segment, the company's largest revenue contributor, saw revenue rise 6.8%. Internet revenue was up 11% and telephone revenue shrank 21%. Commercial revenue was up 20%.

Shares closed Monday at $105.03 and were inactive premarket. The stock has risen 38% so far this year.

Write to Ben Fox Rubin at [e-mail].

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