Charter Communications, the broadband connectivity firm and cable operator behind the Spectrum brand, has reported impressive third-quarter results, showcasing significant year-over-year increases that surpassed market expectations. Earnings per share for the September quarter reached $8.82, marking a rise from $8.25 in the previous year, which was significantly above the consensus estimate of $8.49 by Capital IQ. Total revenue climbed 1.6% to $13.8 billion, exceeding Wall Street predictions that called for $13.66 billion.
This positive trend was buoyed by notable increases in residential mobile services and advertising revenues. In residential segments, revenue edged up by 0.3% to $10.77 billion, spurred by an impressive 38% surge in mobile services. This growth helped offset declines in video and voice services. Commercial sales also experienced a 2% rise to $1.82 billion, while advertising revenue soared by 18% to $452 million, driven by heightened political advertising contributions. Internet revenue grew by 1.7% to $5.87 billion, aided by promotional rate increases and adjustments.
However, Charter faced a loss of 110,000 residential and small- and medium-business internet customers in the quarter, contrasting against a gain of 63,000 customers during the same period last year. CEO Chris Winfrey pointed out on an earnings conference call that the conclusion of the Affordable Connectivity Program (ACP) at the end of June played a significant role in this decline, remarking, 'Were it not for the impact at the end of the ACP in June, we would have grown our internet customers during the third quarter.' CFO Jessica Fischer echoed this sentiment, stating, 'The end of the ACP program drove higher non-pay and voluntary churn among former ACP customers.
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.' In terms of subscriber numbers, Charter experienced a loss of 294,000 video subscribers, an improvement compared to the 327,000 losses faced a year ago.
The decline in voice customers widened slightly to 288,000 from 286,000 year-over-year. Meanwhile, net additions in mobile lines, including phones and tablets, fell to 545,000, down from 594,000 in the same quarter of 2023. Looking ahead, Charter has adjusted its full-year 2024 capital expenditures guidance to approximately $11.5 billion, down from a prior estimate of $12 billion.
This revised outlook reflects lower expected spending on network evolution and line extensions, partially offset by expenditures related to restoration efforts following recent hurricanes..