Financials & Valuation
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Revenue and EBITDA grew YoY again (6.2% and 9.7%) but free cash flow was down almost 20% from capex increasing (9% jump). Charter is becoming a cash tax payer with NOLs being used — Q2 cash taxes were $470m vs. $69m in 2Q21 and $157m for all of 2021. Both Charter and Comcast struggled with new customer relationships. Total customers fell a smidge in Q2. The push into mobile continues to do well with revenue growing 40% in the Q and YTD (now makes up >5% of total sales). Profitability is unknown but management expects it to eventually contribute to EBITDA growth.
Trailing EBITDA was $21.4bn and FCF was $7.9bn. Charter repurchased $4.3bn stock at an average price of $510/sh in Q2.
At $460/sh, Charter is currently trading at 10.6x FCF and 8.4x trailing EBITDA. Both are below long-term averages.