Business Analysis of Charter Communications

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Charter Communications

CHARTER COMMUNICATIONS

Business Overview

Charter Communications, Inc., through its subsidiaries, provides cable services to residential and commercial customers in the United States. It offers subscription-based video services, including a package of basic video programming, video on demand, high definition television, digital video recorder, pay-per-view, and Spectrum guide services, as well as ad-supported free online video products. The company also provides Internet services, such as security suite that protects computers from viruses and spyware; in-home WiFi, which permits customers to lease high performance wireless routers to enhance their in-home wireless Internet experience; out-of-home WiFi; parental control features; and residential Internet services. In addition, it offers voice communications services using voice over Internet protocol technology; and broadband communications solutions, such as Internet access, data networking, fiber connectivity, video entertainment, and business telephone services to cellular towers and office buildings for business and carrier organizations. Further, the company provides video programming and music, Web hosting, e-mail and security, and multi-line telephone services, as well as Web-based service management; and sells video and online advertising inventory to local, regional, and national advertising customers. Additionally, it offers fiber-delivered communications and managed information technology solutions; and security and home management services, as well as owns and operates regional sports networks and local sports, news, and lifestyle channels. As of December 31, 2016, the company served approximately 26.2 million residential and business customers. Charter Communications, Inc. was founded in 1999 and is headquartered in Stamford, Connecticut.

Charter Communications

Charter Communications


R&P Rank: 91
Sector: Telecommunications
Industry:Telecom Services
H.Q Location:Missouri
Website: www.charter.com
Company Address:
12405 POWERSCOURT DRIVE, ST. LOUIS MO 63131
Ph:314-965-0555

Business Analysis of Charter Communications

The Telecommunications Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Charter Communications compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Charter Communications to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Charter Communications with an interactive chart.

  1. Revenue Growth: Charter Communications reported a revenue growth of 197.3% year-on-year during 2016. Telecom Services Industry grew at 8.6% in the same period
  2. COGS share of Revenues: Charter Communications COGS share of Revenues details are not available because either company does not share the data or we do not have it
  3. R&D share of Revenues: Charter Communications R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Charter Communications spent 64.3% of its total revenues on Sales, Marketing, and General Administration (SG&A). Telecom Services industry average SG&A spending in the same period was 26.6%
  5. Inventory share of Revenues: Charter Communications Inventory share of Revenues details are not available because either company does not share the data or we do not have it
  6. Accounts Payable share of Revenues: As a percentage of revenue, Charter Communications invested 26.0% of its total revenues on Accounts Payable (A/P) Telecom Services industry average Accounts Payable investment in the same period was 15.9%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Charter Communications invested 4.9% of its total revenues on Accounts Receivable (A/R). Telecom Services industry average Accounts Receivable investment in the same period was 11.4%
  8. PP&E share of Revenues: As a percentage of revenue, Charter Communications invested 113.7% of its total revenues on Property, Plants, and Equipments (PP&E). Telecom Services industry average PPE investment in the same period was 79.2%
  9. Intangibles share of Revenues: As a percentage of revenue, Charter Communications invested 152.1% of its total revenues on Intangibles. Telecom Services industry average Intangibles investment in the same period was 116.1%
  10. Net Margins: Charter Communications Net Margins in the year 2016 were 12.1%. Telecom Services industry average Net Margins in the same period were 6.9%

Sector and Industry Association of Charter Communications

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

Charter Communications is associated with Telecommunications Sector and Telecom Services Industry.

Telecommunications sector is comprised of the following industries: Telecom Services; Communication Equipment. The definitions for each of the industries is as follows:

  • Telecom Services industry includes providers of fixed-line and mobile telephone services.
  • Communication Equipment industry includes providers of communication equipment to the telecom service providers. It also includes companies that own, operate, and lease mobile site towers to multiple wireless services providers.

Industry Ranking of Charter Communications

With $29 billion revenues, Charter Communications ranked number 5 of all the companies in the US Telecom Services industry. There were a total of 36 public companies in the US Telecom Services industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Telecom Services industry by revenues during 2016 were:

  1. AT&T ($163.8 billion)
  2. Verizon ($126 billion)
  3. T-Mobile US ($37.2 billion)
  4. Sprint ($32.2 billion)
  5. Charter Communications ($29 billion)
  6. Liberty Global ($20 billion)
  7. CenturyLink ($17.5 billion)
  8. Dish Network ($15.1 billion)
  9. Frontier Communications ($8.9 billion)
  10. Level 3 Communications ($8.2 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Charter Communicationsand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of charter-communications

Verizon (VZ) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Verizon Communications Inc with $126 billion revenues in the year 2016 was the number 2 Telecom Services company. Read this report to know the top competitors of Verizon and identify growth and cost optimization opportunities of Verizon

T-Mobile US (TMUS) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

T-Mobile US, Inc. with $37 billion revenues in the year 2016 was the number 3 Telecom Services company. Read this report to know the top competitors of T-Mobile US and identify growth and cost optimization opportunities of T-Mobile US

Sprint (S) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Sprint Corp with $32 billion revenues in the year 2016 was the number 4 Telecom Services company. Read this report to know the top competitors of Sprint and identify growth and cost optimization opportunities of Sprint

Liberty Global (LBTYA) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Liberty Global Plc with $20 billion revenues in the year 2016 was the number 6 Telecom Services company. Read this report to know the top competitors of Liberty Global and identify growth and cost optimization opportunities of Liberty Global

CenturyLink (CTL) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

CenturyLink, Inc with $17 billion revenues in the year 2016 was the number 7 Telecom Services company. Read this report to know the top competitors of CenturyLink and identify growth and cost optimization opportunities of CenturyLink

Dish Network (DISH) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Dish Network Corp with $15 billion revenues in the year 2016 was the number 8 Telecom Services company. Read this report to know the top competitors of Dish Network and identify growth and cost optimization opportunities of Dish Network

Revenues Analysis

Charter Communications (CHTR) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Charter Communications, Inc. (CHTR) from 2012 to 2016. Charter Communications generated a total of $29 billion revenues during 2016. Charter Communications reported a revenue growth of 197.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Charter Communications (CHTR) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Charter Communications, Inc. (CHTR) from 2002 to 2016. Charter Communications generated a total of $29 billion revenues during 2016. Charter Communications reported a revenue growth of 197.3% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Charter Communications (CHTR) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Charter Communications, Inc. (CHTR) revenue growth with Telecom Services industry growth during the last five years from 2012 to 2016. Charter Communications reported a revenue growth of 197.3% year-over-year during 2016. The Telecom Services industry growth was 8.6% year-over-year during 2016. Charter Communications growth was faster than the industry during 2016.

Profit Analysis

Charter Communications (CHTR) Net Profit And Net Margin From 2015 To...

This report provides the last two years net profit and net margin of Charter Communications, Inc. (CHTR) from 2015 to 2016. Charter Communications reported a total net income of $3.5 billion during 2016. Charter Communications generated a total of $29 billion revenues during 2016. Charter Communications net profit margin was 12.1% during 2016. The net profit and the net profit margin correspond to the fiscal year ending in December.