Why did CHTR's Q2 earnings exceed expectations?

Charter Communications' (CHTR) Q2 earnings exceeded expectations due to several key factors:

1. Revenue Growth: Charter reported a revenue growth of 0.2% year-on-year, reaching $13.7 billion, slightly above the analyst estimate of $13.59 billion. This growth was driven by increases in mobile service revenue and internet revenue, which rose by 36.9% and 1.3%, respectively.
2. EBITDA Growth: The company's Adjusted EBITDA grew by 2.6% year-on-year, reaching $5.7 billion. This indicates improved operational efficiency and profitability.
3. Mobile Service Revenue: Charter's mobile service revenue experienced a significant increase, growing by 36.9%. This substantial rise contributed to the overall revenue outperformance.
4. Cost Management: Charter's focus on efficiencies led to a 100 basis point expansion in adjusted EBITDA margin to 41.4%, reflecting effective cost management.
5. Free Cash Flow: The company's free cash flow improved significantly to $1.3 billion, up from $668 million in the prior year. This improvement is attributed to higher net cash flows from operating activities.

In summary, Charter's Q2 earnings exceeded expectations due to strong revenue growth, particularly in mobile services, effective cost management, and improved operational efficiency, as evidenced by the increase in EBITDA and free cash flow.