Charter reports $1.5B Q4 loss before April 1 bankruptcy

Charter Communications, the nation's fourth-largest cable operator, reported a widening loss year-over-year. One of its subsidiaries also will not make an interest payment on debt because the company is going into a prearranged bankruptcy April 1.

Poor Charter hasn't made a profit since going public in 1999. In the fourth quarter, the company recorded a loss of $1.5 billion ($3.96 per share) as compared to only (!) $468 million ($1.27 per share) in Q4 2007. 

Charter's most recent results include a $1.52 billion impairment charge. If not for high interest payments on its debt, Charter could have posted a profit for several quarters. In Q4, it paid a whopping $486 million in interest. Adjusted earnings before interest, taxes, depreciation, and amortization came to $620 million in the quarter, up 10 percent.

For the full year, Charter posted a lost of $2.45 billion ($6.56 a share), compared to a loss of $1.62 billion ($4.36 per share) in 2007.

If you wanted good news, revenues for the company grew 6.6 percent, from $1.5 billion to $1.66 billion, driven by growth in phone and high-speed broadband services. Demand for DTV service and its entry into the SMB market have also helped. ARPU per subscriber rose by 10 percent to $108.27.

As of Dec. 31, 2008, Charter had $21.7 billion in total debt. Even after it goes through bankruptcy, it will still have $13 billion of mostly bank debt coming due from 2013 to 2016.

For more:
- AP via The Google. Article.

Related articles
Charter Communications will file for bankruptcy - FierceTelecom
Charter sues Verizon over FiOS patent violations - FierceTelecom

Suggested Articles

LF Edge, an umbrella organization that's part of the Linux Foundation, announced the second release of its Akraino Edge Stack.

Chris Young is leaving his role as CEO of cybersecurity firm McAfee to become a senior advisor with TPG Capital, which has a majority stake in McAfee.

CenturyLink wins a $1.6 billion contract with the U.S. Department of Interior to upgrade its network services and modernize its IT solutions.