Charter Communications SWOT & PESTLE Analysis

Strength

1. Leader in telephone and internet services: Chartered Communications is the second largest cable operator in the USA and the third largest Pay TV providers (by the number of subscribers). The company added 940,000 new customer relationships and over 1.2 million net new Internet Customers in the 2021. The company also grew their mobile lines by 1.2 million in 2021. The company improved this in the following year and added 1.7 residential and SMB mobile lines in 2022. This also helped them significantly as by the end of 2022, the company had a total of 32.2 million residential and SMB customer relationships. This is an increase of almost 4 million from the number of users in 2019 with an addition of 344,000 total Internet customers in the year 2022 itself. As mentioned already, the company is the second largest cable operator in the United States and the leading company in broadband communication services providing video, internet and voice services. They own and operate regional and local sports, and news channels. Charter boasts of a high capacity, two-way telecommunications network which encompasses 50 million households and many SMEs across the United States. They also offer wireless internet services which include Wi-Fi services. About 250 million devices are expected to be wirelessly connected through their network. The wireless connections are focused more on homes.

2. Strong financial performance and revenue growth: Charter Communications has a stable financial performance and has seen consistent revenue growth over the years. This strong financial performance provides the company with the resources to invest in new initiatives and expand its operations. Additionally, consistent revenue growth demonstrates the company's ability to meet customer needs and generate customer loyalty. The company has seen steady growth in revenue during the Covid era too on the back of an increased demand for more mobile and home internet connections due to the rapid digitalisation. The revenue of the company has steadily increased over the last three years. In 2020, the total revenue was $48,097 million which was an increase of almost $2.5 million compared to the year 2019. In 2021, this saw an increase by 7.5% and increased to $51,682 million. This further strongly increased by 4.5% in the year 2022 and the reported revenue for the year was $54,022. Similarly, the adjusted EBITDA increased by 4.8% in 2022 compared to 2021. For the time period of 2019 to 2021, the adjusted EBITDA increased by a whopping 11% from $16,855 million in 2019 to $20,630 million in 2021. The net income attributable to shareholders increased by 44% in 2021 and was reported at $4.7 billion. This number increased further in 2022 and reached a total of $5.1 billion.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

1. Increasing shift towards remote work and online education: There has been a significant shift towards remote work and online education due to the COVID-19 pandemic. Research has shown that remote work has increased dramatically since the pandemic began. For example, a survey by the Global Workplace Analytics found that remote work has increased by 159% since 2005, and it has accelerated since the pandemic started. Similarly, the shift towards online education has been significant, with many schools and universities having to move their classes and lectures online to prevent the spread of the virus. According to a report by EdTechXGlobal, the global edtech market was valued at $252 billion in 2020, a year-on-year growth of 17.5%, largely driven by the pandemic. This is estimated to grow at an CAGR of 14-16% overall. The benefit of this trend was visible right way for Charter Communications as in its 2020 Q4 earnings call, Charter Communications reported that it added over 400,000 residential internet customers during the quarter, which was an all-time high for the company. The company also reported strong growth in its business services segment, with double-digit increases in both revenue and customer relationships. With more people working and learning from home, the demand for high-speed internet has increased, leading to an increase in revenue for Charter Communications. The company has also been able to offer new services and packages to meet the changing needs of its customers, such as high-speed internet for remote work and online education, which has further boosted its revenue. Additionally, Charter Communications has also been investing in its network infrastructure to improve the quality of its services, which has helped to attract and retain customers.

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Technological

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Legal

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Environmental

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