What happened

Actions of Communication Charter (NASDAQ: CHTR) jumped 16.2% last month, according to data from S & P Global Market Intelligence, following the company's strong financial results for the fourth quarter.

So what

Charter business turnover in the fourth quarter reached $ 11.23 billion, up 5.9% from one year to the next, thus exceeding Wall Street expectations of 11. , $ 14 billion. The company recorded broad-based growth, with revenues of 3.9%, 4.5% and 34.1%, respectively, in the residential, commercial and advertising sectors.

In addition, Charter has completed a major network upgrade initiative that will bring advanced digital features, such as interactive programming, to customers it has acquired as part of its Time Warner Cable acquisitions. and Bright House Networks.

"We recorded good performance in 2018, increasing our Internet customer base by 1.3 million, our cable business revenue by 4.7% and our cable adjusted EBITDA by 6.5% – a very strong strong operational and financial performance, especially at the heart of the largest cable integration, "said chairman and chief executive Tom Rutledge in a press release.

Dollar bills rolled up the stairs

Charter Communication's cash flow is expected to increase sharply over the next year. Source of the image: Getty Images.

Now what

As the integration of Time Warner and Bright House is almost complete, Charter is starting to reduce capital expenditures. This should significantly boost the company's free cash flow and, by extension, its ability to return more capital to shareholders through share buybacks.

Perhaps in anticipation of these capital gains, investors have already announced a 4% rise in the share price of Charter Communication in February, suggesting that further gains could be expected. still be made for cable cable.

Joe Tenebruso has no position in the mentioned actions. The Motley Fool has no position in any of the actions mentioned. Motley Fool has a disclosure policy.