10:48 AM EDT, 11/01/2024 (MT Newswires) -- Charter Communications' ( CHTR ) third-quarter results increased year over year and topped market estimates, buoyed by double-digit revenue gains in residential mobile services and advertising.

The broadband connectivity company and cable operator, which owns the Spectrum brand, posted earnings of $8.82 a share for the September quarter, up from $8.25 a year ago. The consensus on Capital IQ was for GAAP EPS of $8.49. Revenue increased 1.6% to $13.8 billion, ahead of the Street's view for $13.66 billion.

Charter's stock advanced 13% in Friday trading.

Residential revenue edged 0.3% higher to $10.77 billion as a roughly 38% jump in mobile services helped offset declines in video and voice. Commercial sales ticked up 2% to $1.82 billion, while advertising climbed 18% to $452 million due to higher political revenue.

Internet revenue grew 1.7% to $5.87 billion boosted by promotional rate step-ups and rate adjustments. Charter lost 110,000 residential and small- and medium-business internet customers in the quarter, compared with a gain of 63,000 last year. "Were it not for the impact at the end of the (Affordable Connectivity Program) in June, we would have grown our internet customers during the third quarter," Chief Executive Chris Winfrey said on an earnings conference call, according to a Capital IQ transcript.

"The end of the ACP program drove higher third quarter non-pay and voluntary churn among former ACP customers," Chief Financial Officer Jessica Fischer said on the call. "We continued to do a very good job in managing the end of the program, and we've retained the vast majority of our customers who were previously receiving an ACP benefit."

Charter lost 294,000 video subscribers in the quarter, compared with 327,000 losses a year ago. The loss in the number of voice customers widened to 288,000 from 286,000 on an annual basis. Net additions in mobile lines, which include phones and tablets, dropped to 545,000 from 594,000 in the 2023 quarter.

Charter now projects full-year 2024 capital expenditures at roughly $11.5 billion, down from its previous guidance of $12 billion. The revised outlook reflects lower expected network evolution and line extension spend this year, partly offset by spending on restoration efforts following recent hurricanes, according to the company.

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