Charter’s Loss Widens as Expenses Offset Gains

Cable television system operator Charter Communications Inc. said Tuesday that its second-quarter loss widened because of increased operating expenses, more than offsetting gains in new telephone customers.

St. Louis-based Charter -- which serves Southern California cities including Pasadena, Burbank, Glendale and Long Beach -- lost $382 million, or $1.20 a share. That compared with a loss of $356 million, or $1.17, a year earlier.

Analysts polled by Thomson Financial were expecting a loss of 93 cents a share on average. Charter shares fell 14 cents, or 11%, to $1.18.

The loss from continuing operations grew to $402 million, or $1.27 a share, from a loss of $359 million, or $1.18 a share, last year.

Operating expenses increased 12% to $887 million, primarily as a result of higher rates of customer growth and higher programming costs.

Revenue for the quarter increased 9% to $1.38 billion as a result of improvements across all business segments.

Telephone sales more than tripled to $29 million, and video revenue rose 4% to $853 million.