Charter Communications' Q4 2024 Earnings: A Mixed Bag Amidst Natural Disasters and ACP Impact

As the calendar turned to 2025, Charter Communications, Inc. (CHTR) reported its fourth quarter and full-year 2024 earnings, providing investors with a mixed bag of results amidst the impact of natural disasters and the end of the Affordable Connectivity Program (ACP). The cable giant, which operates under the Spectrum brand, saw its total Internet customers decrease by 177,000 in the quarter, while mobile lines increased by 529,000. Revenue grew by 1.6% year-over-year, driven by residential mobile service revenue growth of 37.4% and advertising sales revenue growth of 26.4%.

However, the company faced significant challenges in the quarter, including the impact of natural disasters such as Hurricanes Helene and Milton, which led to over 20,000 additional disconnects and reduced adjusted EBITDA by approximately $35 million. Additionally, the end of the ACP program resulted in an estimated 140,000 Internet losses, primarily due to higher non-pay disconnects and some voluntary churn among former ACP customers.

Despite these challenges, Charter Communications has been investing in network evolution, expansion, and execution, which has delivered tangible results. The company has been expanding its service area, including through subsidized initiatives, to reach more customers and grow its customer base. Additionally, Charter Communications has been developing new products and services that converge wireline and wireless connectivity, such as the launch of new mobile lines, which grew by 27.3% year-over-year.

Looking ahead, Charter Communications is well-positioned for customer and profitability growth, with clear visibility to free cash flow growth following this unique one-time investment cycle. The company's strategic initiatives, such as network evolution, new pricing and packaging, and converged connectivity product development, have contributed to its customer and financial growth in the fourth quarter of 2024, despite the challenges posed by natural disasters and the end of the ACP program.

In conclusion, Charter Communications' Q4 2024 earnings call provided a mixed bag of results, with the company facing significant challenges amidst natural disasters and the impact of the end of the ACP program. However, the cable giant's strategic initiatives and investments in network evolution, expansion, and execution have positioned it for continued customer and financial growth in the coming years. As an investor, I remain optimistic about Charter Communications' long-term prospects and its ability to adapt to the changing landscape of the broadband and mobile industries.