Charter Falls Short of Targets

Charter Communications Inc. reported higher third-quarter cash flow and revenue but fell short of its targets as slow advertising revenue and aggressive marketing cut into results at the No. 4 U.S. cable television operator.

The company said it expects 2001 revenue growth of 12.5% to 13.5%, down from its September forecast of 14% to 16%. It also cut its estimate for cash flow growth to between 10% and 11% from a previous range of 12% to 14%.

Charter said operating cash flow-a measurement preferred by analysts for capital-intensive cable companies--rose 17% in the third quarter, to $467.5 million from $398.9 million a year earlier. Revenue increased 24%, to $1.04 billion from $839 million.

Charter shares were down $1.64 to $12.50 in Nasdaq trading.