On Friday May 1, 2015, Charter Communications announced 2015Q1 solid results. First quarter revenues of $2.4 billion grew 7.3%1 as compared to the prior-year period, driven by residential revenue growth of 6.7% and commercial revenue growth of 14.8%. Residential customer relationships increased by 86,000 during the first quarter, versus 112,000 during the first quarter of 2014. For the twelve months ending March 31, 2015, residential customer relationships grew by 4.5%, or 254,000.

“Our first quarter results continue to demonstrate the sustainable growth trajectory of our operating strategy to provide high quality products and service at an attractive price,” said Tom Rutledge, President and CEO of Charter Communications. “Our continued customer relationship growth reflects the growing value and utility of our offerings and higher levels of customer satisfaction. Our subscriber and revenue growth, combined with declining capital intensity, is leading to meaningful free cash flow growth.”

The real question is what happens next at Charter. Last week Comcast and Time Warner Cable (TWC)  announced that they were ending their merger negotiations. This morning, there is renewed speculation about a friendly deal between Charter and TWC.  One such article can be seen at http://www.thestreet.com/story/13136599/1/time-warner-cable-twc-stock-gaining-on-speculation-of-friendly-deal-talks-with-charter.html

However things shake out, it certainly appears that the US cable industry is in for transition and consolidation. The MSOs may well look quite different in 12 months.

For more details on Charter’s results, see http://ir.charter.com/phoenix.zhtml?c=112298&p=irol-newsArticle&ID=2042901