Technology
Charter Announces Second Quarter 2024 Results
Published
2 years agoon
By
STAMFORD, Conn., July 26, 2024 /PRNewswire/ — Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”) today reported financial and operating results for the three and six months ended June 30, 2024.
Second quarter total residential and small and medium business (“SMB”) Internet customers decreased by 149,000. As of June 30, 2024, Charter served a total of 30.4 million residential and SMB Internet customers.Second quarter total residential and SMB mobile lines increased by 557,000. As of June 30, 2024, Charter served a total of 8.8 million mobile lines.As of June 30, 2024, Charter had a total of 31.8 million residential and SMB customer relationships, excluding mobile-only relationships.Second quarter revenue of $13.7 billion grew by 0.2% year-over-year, driven by residential mobile service revenue growth of 36.9% and residential Internet revenue growth of 1.3%.Net income attributable to Charter shareholders totaled $1.2 billion in the second quarter.Second quarter Adjusted EBITDA1 of $5.7 billion grew by 2.6% year-over-year.Second quarter capital expenditures totaled $2.9 billion and included $1.1 billion of line extensions.Second quarter net cash flows from operating activities totaled $3.9 billion, compared to $3.3 billion in the prior year.Second quarter free cash flow1 of $1.3 billion increased from $668 million in the prior year, primarily due to higher Adjusted EBITDA, a more favorable change in working capital and lower cash taxes due to timing.During the second quarter, Charter purchased 1.5 million shares of Charter Class A common stock and Charter Communications Holdings, LLC (“Charter Holdings”) common units for $404 million.
“We are executing well on several transformational initiatives, growing EBITDA through efficiencies, and improving our service and sales capabilities,” said Chris Winfrey, President and CEO of Charter. “We remain fully focused on driving customer growth, with a unique, high quality product set that continues to evolve, creating long term value for shareholders.”
1.
Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.
Key Operating Results
Approximate as of
June 30, 2024 (c)
June 30, 2023 (c)
Y/Y Change
Footprint
Estimated Passings (d)
57,774
56,209
2.8 %
Customer Relationships (e)
Residential
29,615
30,009
(1.3) %
SMB
2,222
2,219
0.2 %
Total Customer Relationships
31,837
32,228
(1.2) %
Residential
(182)
13
(195)
SMB
3
4
(1)
Total Customer Relationships Quarterly Net Additions
(179)
17
(196)
Total Customer Relationship Penetration of Estimated Passings (f)
55.1 %
57.3 %
(2.2) ppts
Monthly Residential Revenue per Residential Customer (g)
$ 120.77
$ 120.25
0.4 %
Monthly SMB Revenue per SMB Customer (h)
$ 165.28
$ 164.56
0.4 %
Residential Customer Relationships Penetration
One Product Penetration (i)
47.7 %
46.0 %
1.7 ppts
Two Product Penetration (i)
33.2 %
33.0 %
0.2 ppts
Three or More Product Penetration (i)
19.2 %
20.9 %
(1.7) ppts
% Residential Non-Video Customer Relationships
57.1 %
53.1 %
4.0 ppts
Internet
Residential
28,318
28,549
(0.8) %
SMB
2,049
2,037
0.6 %
Total Internet Customers
30,367
30,586
(0.7) %
Residential
(154)
70
(224)
SMB
5
7
(2)
Total Internet Quarterly Net Additions
(149)
77
(226)
Video
Residential
12,718
14,071
(9.6) %
SMB
591
635
(6.9) %
Total Video Customers
13,309
14,706
(9.5) %
Residential
(393)
(189)
(204)
SMB
(15)
(11)
(4)
Total Video Quarterly Net Additions
(408)
(200)
(208)
Voice
Residential
6,170
7,248
(14.9) %
SMB
1,276
1,294
(1.4) %
Total Voice Customers
7,446
8,542
(12.8) %
Residential
(268)
(225)
(43)
SMB
(12)
4
(16)
Total Voice Quarterly Net Additions
(280)
(221)
(59)
Mobile Lines (j)
Residential
8,531
6,410
33.1 %
SMB
278
216
28.7 %
Total Mobile Lines
8,809
6,626
32.9 %
Residential
539
628
(89)
SMB
18
20
(2)
Total Mobile Lines Quarterly Net Additions
557
648
(91)
Enterprise (k)
Enterprise Primary Service Units (“PSUs”)
312
294
6.1 %
Enterprise Quarterly Net Additions
4
6
(2)
In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
As of June 30, 2024, Charter had 29.6 million residential customer relationships, excluding mobile-only relationships.
Second quarter residential Internet customers decreased by 154,000, largely driven by the end of the FCC’s Affordable Connectivity Program (“ACP”) subsidies in the second quarter, compared to an increase of 70,000 during the second quarter of 2023. Spectrum Internet® delivers the fastest Internet speeds1 in the nation. Charter is evolving its connectivity network at a lower cost than its competitors to offer symmetrical and multi-gigabit Internet speeds across its entire footprint. Charter’s Advanced WiFi, a managed WiFi service that provides customers an optimized home network while providing greater control of connected devices with enhanced security and privacy is available to all Spectrum Internet customers.
Residential video customers decreased by 393,000 in the second quarter of 2024, compared to a decline of 189,000 in the second quarter of 2023. As of June 30, 2024, Charter had 12.7 million residential video customers.
During the second quarter of 2024, residential wireline voice customers declined by 268,000, compared to a decline of 225,000 in the second quarter of 2023. As of June 30, 2024, Charter had 6.2 million residential wireline voice customers.
During the second quarter of 2024, Charter added 539,000 residential mobile lines, compared to growth of 628,000 during the second quarter of 2023. Spectrum MobileTM is available to all new and existing Spectrum Internet customers and offers the fastest overall speeds,2 with plans that include 5G access, do not require contracts and include taxes and fees in the price. Spectrum Mobile is central to Charter’s converged network strategy to provide consumers a differentiated connectivity experience with highly competitive, simple data plans and pricing.
In April, Charter launched Anytime Upgrade, which is now included in the Spectrum Mobile Unlimited Plus data plan at no extra cost, and allows new and existing customers to upgrade their phones whenever they want, as many times as they want, eliminating the traditional wait times and condition requirements associated with phone upgrades. In May, Charter launched a phone balance buyout program, making it easier for customers to switch and save money. When a customer switches to Spectrum Mobile from another provider and purchases at least three lines with at least one ported line, Charter will pay off their existing phone balance on ported lines up to $2,500 while also enabling potential savings of hundreds of dollars annually on their mobile bills.
Second quarter 2024 monthly residential revenue per residential customer totaled $120.77, and increased by 0.4% compared to the prior year period, given promotional rate step-ups, rate adjustments and the growth of Spectrum Mobile, partly offset by a lower mix of video customer relationships, a higher mix of lower priced video packages within Charter’s video customer base and retention offers extended to customers that previously received an ACP subsidy.
SMB customer relationships increased by 3,000 in the second quarter of 2024, while second quarter 2023 SMB customer relationships grew by 4,000. Enterprise PSUs grew by 4,000 in the second quarter of 2024 versus 6,000 added in the second quarter of 2023.
Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the second quarter of 2024, Charter activated 89,000 subsidized rural passings. Within Charter’s subsidized rural footprint, total residential and SMB customer relationships increased by 36,000 in the second quarter of 2024.
1.
Based on Broadband Download Speed nationally in Opensignal USA: Fixed Broadband Experience Report – National View, May 2024. Based on Opensignal independent analysis of mean download speed. © 2024 Opensignal Limited.
2.
Based on Charter’s analysis of Ookla® Speedtest Intelligence® data for overall mobile WiFi and Cellular performance for 1Q24 in Charter’s footprint.
Second Quarter Financial Results
(in millions)
Three Months Ended June 30,
2024
2023
% Change
Revenues:
Internet
$ 5,806
$ 5,733
1.3 %
Video
3,867
4,188
(7.7) %
Voice
350
365
(4.2) %
Mobile service
737
539
36.9 %
Residential revenue
10,760
10,825
(0.6) %
Small and medium business
1,101
1,094
0.6 %
Enterprise
721
690
4.5 %
Commercial revenue
1,822
1,784
2.1 %
Advertising sales
397
384
3.3 %
Other
706
666
6.0 %
Total Revenues
$ 13,685
$ 13,659
0.2 %
Net income attributable to Charter shareholders
$ 1,231
$ 1,223
0.5 %
Net income attributable to Charter shareholders margin
9.0 %
9.0 %
Adjusted EBITDA1
$ 5,665
$ 5,522
2.6 %
Adjusted EBITDA margin
41.4 %
40.4 %
Capital Expenditures
$ 2,853
$ 2,834
0.7 %
Net cash flows from operating activities
$ 3,853
$ 3,311
16.4 %
Free cash flow1
$ 1,296
$ 668
94.0 %
All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
1.
Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.
Revenues
Second quarter revenue increased by 0.2% year-over-year to $13.7 billion, driven by growth in residential mobile service, residential Internet, enterprise and other revenues, partly offset by lower residential video revenue.
Residential revenue totaled $10.8 billion in the second quarter, a decrease of 0.6% year-over-year.
Internet revenue grew by 1.3% year-over-year to $5.8 billion, driven by promotional rate step-ups and rate adjustments, partly offset by lower bundled revenue allocation and retention offers extended to customers that previously received an ACP subsidy.
Video revenue totaled $3.9 billion in the second quarter, a decrease of 7.7% compared to the prior year period, driven by a decline in video customers during the last year and a higher mix of lower priced video packages within Charter’s video customer base, partly offset by promotional rate step-ups and video rate adjustments that pass through programmer rate increases.
Voice revenue decreased by 4.2% year-over-year to $350 million, driven by a decline in wireline voice customers over the last twelve months, partly offset by voice rate adjustments.
Second quarter mobile service revenue totaled $737 million, an increase of 36.9% year-over-year, driven by mobile line growth and higher bundled revenue allocation.
Commercial revenue increased by 2.1% year-over-year to $1.8 billion, driven by enterprise and SMB revenue growth of 4.5% and 0.6% year-over-year, respectively. The year-over-year increase in second quarter 2024 SMB revenue was driven by higher monthly SMB revenue per SMB customer, primarily due to rate adjustments, and customer relationship growth. Enterprise revenue excluding wholesale increased by 5.9% year-over-year, mostly reflecting PSU growth.
Second quarter advertising sales revenue of $397 million increased by 3.3% compared to the year-ago quarter, primarily driven by higher political revenue. Excluding political revenue in both periods, advertising sales revenue decreased by 2.2% year-over-year due to a more challenged advertising market, partly offset by higher advanced advertising revenue.
Other revenue totaled $706 million in the second quarter, an increase of 6.0% compared to the second quarter of 2023, primarily driven by higher mobile device sales.
Operating Costs and Expenses
Second quarter programming costs decreased by $268 million, or 9.8% as compared to the second quarter of 2023, reflecting fewer video customers and a higher mix of lower cost packages within Charter’s video customer base, partly offset by contractual programming rate increases and renewals.
Other costs of revenue increased by $171 million, or 12.6% year-over-year, primarily driven by higher mobile service direct costs and mobile device sales.
Costs to service customers decreased by $88 million, or 4.2% year-over-year, primarily due to lower labor costs and lower bad debt expense.
Sales and marketing expenses increased by $17 million, or 1.9% year-over-year, primarily due to higher marketing costs.
Other expenses increased by $51 million, or 4.7% as compared to the second quarter of 2023, mostly driven by an insurance expense benefit in the year-ago quarter.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled $1.2 billion in the second quarter of 2024, compared to $1.2 billion in the second quarter of 2023, with higher Adjusted EBITDA mostly offset by higher other operating expense primarily due to restructuring and severance costs and net amounts of litigation settlements.
Net income per basic common share attributable to Charter shareholders totaled $8.58 in the second quarter of 2024 compared to $8.15 during the same period last year. The increase was primarily the result of the factors described above in addition to a 4.5% decrease in basic weighted average common shares outstanding versus the prior year period.
Adjusted EBITDA
Second quarter Adjusted EBITDA of $5.7 billion grew by 2.6% year-over-year, reflecting growth in revenue of 0.2% and a decrease in operating expenses of 1.4%.
Capital Expenditures
Capital expenditures totaled $2.9 billion in the second quarter of 2024, an increase of $19 million compared to the second quarter of 2023. Line extensions capital expenditures totaled $1.1 billion in the second quarter of 2024, driven by Charter’s subsidized rural construction initiative and continued network expansion across residential and commercial greenfield and market fill-in opportunities. Second quarter capital expenditures excluding line extensions totaled $1.7 billion, a decrease of $18 million compared to the second quarter of 2023.
Charter now expects full year 2024 capital expenditures to total approximately $12.0 billion, a decrease from Charter’s previously expected range of between $12.2 billion and $12.4 billion. The decrease reflects lower Internet and video customer net additions, including the impact of the end of the ACP, which drives lower CPE and capitalized installation costs. Charter continues to expect line extensions capital expenditures of approximately $4.5 billion and network evolution spend of approximately $1.6 billion, compared to $4.0 billion and $0.9 billion, respectively, in 2023. The actual amount of capital expenditures in 2024 will depend on a number of factors including, but not limited to, the pace of Charter’s network evolution and expansion initiatives, supply chain timing and growth rates in Charter’s residential and commercial businesses.
Cash Flow and Free Cash Flow
During the second quarter of 2024, net cash flows from operating activities totaled $3.9 billion, compared to $3.3 billion in the prior year quarter. The year-over-year increase in net cash flows from operating activities was primarily due to higher Adjusted EBITDA, lower cash taxes due to timing and a more favorable change in working capital.
Free cash flow in the second quarter of 2024 totaled $1.3 billion, an increase of $628 million compared to the second quarter of 2023. The year-over-year increase in free cash flow was primarily driven by an increase in net cash flows from operating activities and a more favorable change in accrued expenses related to capital expenditures.
Liquidity & Financing
As of June 30, 2024, total principal amount of debt was $96.5 billion and Charter’s credit facilities provided approximately $4.1 billion of additional liquidity in excess of Charter’s $602 million cash position.
In May 2024, Charter Communications Operating, LLC (“Charter Operating”) and Charter Communications Operating Capital Corp. jointly issued $1.5 billion of 6.100% senior secured notes due June 2029 at a price of 99.944% of the aggregate principal amount and $1.5 billion of 6.550% senior secured notes due June 2034 at a price of 99.755% of the aggregate principal amount. The net proceeds were used to fund a concurrent tender offer to repurchase $2.7 billion in aggregate principal amount of Charter Operating’s 4.908% senior secured notes due July 2025, to prepay Charter Operating’s outstanding Term B-1 Loan and to pay related fees and expenses.
In June 2024, a bankruptcy remote special purpose vehicle and consolidated subsidiary of the Company, CCO EIP Financing, LLC, (the “SPV Borrower”) entered into a senior secured revolving credit facility to finance the purchase of equipment installment plan receivables (“EIP Receivables”) with a number of financial institutions (the “EIP Financing Facility”). Borrowings under the EIP Financing Facility are secured by the EIP Receivables transferred to the SPV Borrower, future collections on such EIP Receivables, and related assets consisting primarily of restricted cash.
The revolving credit facility under the EIP Financing Facility bears interest on the outstanding borrowings based on lenders’ cost of funds plus an applicable margin and was 6.46% as of June 30, 2024. The EIP Financing Facility has a final maturity date of June 20, 2028, comprised of a one-year revolving loan period, subject to annual renewal, and if not renewed, cash flows on EIP Receivables are applied to amortize the loan which may occur over a period of up to three years. SPV Borrower may borrow up to $1.25 billion under the EIP Financing Facility. As of June 30, 2024, the carrying value of the EIP Financing Facility was $873 million and is included in the Company’s consolidated balance sheets.
Share Repurchases
During the three months ended June 30, 2024, Charter purchased 1.5 million shares of Charter Class A common stock and Charter Holdings common units for $404 million.
Webcast
Charter will host a webcast on Friday, July 26, 2024 at 8:30 a.m. Eastern Time (ET) related to the contents of this release.
The webcast can be accessed live via the Company’s investor relations website at ir.charter.com. Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast.
Additional Information Available on Website
The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2024, which will be posted on the “Results & SEC Filings” section of the Company’s investor relations website at ir.charter.com, when it is filed with the Securities and Exchange Commission (the “SEC”). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the “Results & SEC Filings” section.
Use of Adjusted EBITDA and Free Cash Flow Information
The Company uses certain measures that are not defined by U.S. generally accepted accounting principles (“GAAP”) to evaluate various aspects of its business. Adjusted EBITDA and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income attributable to Charter shareholders and net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and free cash flow are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the Addendum to this release.
Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company’s businesses as well as other non-cash or special items, and is unaffected by the Company’s capital structure or investment activities. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures.
Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
Management and Charter’s board of directors use Adjusted EBITDA and free cash flow to assess Charter’s performance and its ability to service its debt, fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the leverage ratio calculation under the Company’s credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company’s debt covenants refer to these expenses as management fees, which were $366 million and $335 million for the three months ended June 30, 2024 and 2023, respectively, and $737 million and $709 million for the six months ended June 30, 2024 and 2023, respectively.
About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator with services available to more than 57 million homes and businesses in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.
For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise® provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under “Risk Factors” from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as “believe,” “expect,” “anticipate,” “should,” “planned,” “will,” “may,” “intend,” “estimated,” “aim,” “on track,” “target,” “opportunity,” “tentative,” “positioning,” “designed,” “create,” “predict,” “project,” “initiatives,” “seek,” “would,” “could,” “continue,” “ongoing,” “upside,” “increases,” “grow,” “focused on” and “potential,” among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in our annual report on Form 10-K, and in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:
our ability to sustain and grow revenues and cash flow from operations by offering Internet, video, voice, mobile, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures;the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite (“DBS”) operators, wireless broadband and telephone providers, digital subscriber line (“DSL”) providers, fiber to the home providers and providers of video content over broadband Internet connections;general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn;our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents and distribution requirements);our ability to develop and deploy new products and technologies including consumer services and service platforms;any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation;the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us;the ability to hire and retain key personnel;our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives;the availability and access, in general, of funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets; andour ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions.
All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(dollars in millions)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Net income attributable to Charter shareholders
$ 1,231
$ 1,223
$ 2,337
$ 2,244
Plus: Net income attributable to noncontrolling interest
192
190
366
352
Interest expense, net
1,328
1,298
2,644
2,563
Income tax expense
427
444
873
818
Depreciation and amortization
2,170
2,172
4,360
4,378
Stock compensation expense
153
168
367
376
Other, net
164
27
215
141
Adjusted EBITDA (a)
$ 5,665
$ 5,522
$ 11,162
$ 10,872
Net cash flows from operating activities
$ 3,853
$ 3,311
$ 7,065
$ 6,634
Less: Purchases of property, plant and equipment
(2,853)
(2,834)
(5,644)
(5,298)
Change in accrued expenses related to capital expenditures
296
191
233
(4)
Free cash flow (a)
$ 1,296
$ 668
$ 1,654
$ 1,332
The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.
UNAUDITED ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA
(dollars in millions)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
% Change
2024
2023
% Change
REVENUES:
Internet
$ 5,806
$ 5,733
1.3 %
$ 11,632
$ 11,451
1.6 %
Video
3,867
4,188
(7.7) %
7,775
8,442
(7.9) %
Voice
350
365
(4.2) %
724
738
(1.9) %
Mobile service
737
539
36.9 %
1,422
1,036
37.4 %
Residential revenue
10,760
10,825
(0.6) %
21,553
21,667
(0.5) %
Small and medium business
1,101
1,094
0.6 %
2,189
2,185
0.2 %
Enterprise
721
690
4.5 %
1,429
1,372
4.2 %
Commercial revenue
1,822
1,784
2.1 %
3,618
3,557
1.7 %
Advertising sales
397
384
3.3 %
788
739
6.5 %
Other
706
666
6.0 %
1,405
1,349
4.2 %
Total Revenues
13,685
13,659
0.2 %
27,364
27,312
0.2 %
COSTS AND EXPENSES:
Programming
2,472
2,740
(9.8) %
5,042
5,539
(9.0) %
Other costs of revenue
1,538
1,367
12.6 %
2,996
2,695
11.2 %
Costs to service customers
1,981
2,069
(4.2) %
4,075
4,164
(2.1) %
Sales and marketing
912
895
1.9 %
1,832
1,841
(0.5) %
Other expense (b)
1,117
1,066
4.7 %
2,257
2,201
2.5 %
Total operating costs and expenses (b)
8,020
8,137
(1.4) %
16,202
16,440
(1.4) %
Adjusted EBITDA (a)
$ 5,665
$ 5,522
2.6 %
$ 11,162
$ 10,872
2.7 %
All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
See footnotes on page 7.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in millions, except per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
REVENUES
$ 13,685
$ 13,659
$ 27,364
$ 27,312
COSTS AND EXPENSES:
Operating costs and expenses (exclusive of items shown separately below)
8,173
8,305
16,569
16,816
Depreciation and amortization
2,170
2,172
4,360
4,378
Other operating (income) expenses, net
79
(58)
41
(48)
10,422
10,419
20,970
21,146
Income from operations
3,263
3,240
6,394
6,166
OTHER INCOME (EXPENSES):
Interest expense, net
(1,328)
(1,298)
(2,644)
(2,563)
Other expenses, net
(85)
(85)
(174)
(189)
(1,413)
(1,383)
(2,818)
(2,752)
Income before income taxes
1,850
1,857
3,576
3,414
Income tax expense
(427)
(444)
(873)
(818)
Consolidated net income
1,423
1,413
2,703
2,596
Less: Net income attributable to noncontrolling interests
(192)
(190)
(366)
(352)
Net income attributable to Charter shareholders
$ 1,231
$ 1,223
$ 2,337
$ 2,244
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER
SHAREHOLDERS:
Basic
$ 8.58
$ 8.15
$ 16.24
$ 14.89
Diluted
$ 8.49
$ 8.05
$ 16.03
$ 14.69
Weighted average common shares outstanding, basic
143,329,828
150,091,880
143,920,073
150,761,406
Weighted average common shares outstanding, diluted
144,914,860
151,975,698
145,742,397
152,727,540
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)
June 30,
December 31,
2024
2023
ASSETS
(unaudited)
CURRENT ASSETS:
Cash and cash equivalents
$ 602
$ 709
Accounts receivable, net
3,000
2,965
Prepaid expenses and other current assets
531
458
Total current assets
4,133
4,132
INVESTMENT IN CABLE PROPERTIES:
Property, plant and equipment, net
41,256
39,520
Customer relationships, net
1,319
1,745
Franchises
67,444
67,396
Goodwill
29,668
29,668
Total investment in cable properties, net
139,687
138,329
OTHER NONCURRENT ASSETS
4,791
4,732
Total assets
$ 148,611
$ 147,193
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable, accrued and other current liabilities
$ 10,726
$ 11,214
Current portion of long-term debt
—
2,000
Total current liabilities
10,726
13,214
LONG-TERM DEBT
96,692
95,777
EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY
873
—
DEFERRED INCOME TAXES
18,927
18,954
OTHER LONG-TERM LIABILITIES
4,679
4,530
SHAREHOLDERS’ EQUITY:
Controlling interest
12,879
11,086
Noncontrolling interests
3,835
3,632
Total shareholders’ equity
16,714
14,718
Total liabilities and shareholders’ equity
$ 148,611
$ 147,193
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income
$ 1,423
$ 1,413
$ 2,703
$ 2,596
Adjustments to reconcile consolidated net income to net cash flows from
operating activities:
Depreciation and amortization
2,170
2,172
4,360
4,378
Stock compensation expense
153
168
367
376
Noncash interest, net
8
7
16
4
Deferred income taxes
(34)
(40)
(13)
(63)
Other, net
90
83
105
187
Changes in operating assets and liabilities, net of effects from acquisitions
and dispositions:
Accounts receivable
6
(13)
(33)
57
Prepaid expenses and other assets
101
(25)
(265)
(361)
Accounts payable, accrued liabilities and other
(64)
(454)
(175)
(540)
Net cash flows from operating activities
3,853
3,311
7,065
6,634
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment
(2,853)
(2,834)
(5,644)
(5,298)
Change in accrued expenses related to capital expenditures
296
191
233
(4)
Other, net
(172)
(207)
(225)
(287)
Net cash flows from investing activities
(2,729)
(2,850)
(5,636)
(5,589)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt
8,822
3,944
14,743
11,048
Borrowings of equipment installment plan financing facility
876
—
876
—
Repayments of long-term debt
(10,068)
(3,995)
(15,784)
(10,735)
Payments for debt issuance costs
(25)
—
(27)
(18)
Purchase of treasury stock
(361)
(326)
(877)
(1,238)
Proceeds from exercise of stock options
—
3
2
5
Purchase of noncontrolling interest
(46)
(54)
(141)
(176)
Distributions to noncontrolling interest
(61)
(80)
(64)
(83)
Other, net
(280)
(9)
(224)
(15)
Net cash flows from financing activities
(1,143)
(517)
(1,496)
(1,212)
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
(19)
(56)
(67)
(167)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
661
534
709
645
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
$ 642
$ 478
$ 642
$ 478
CASH PAID FOR INTEREST
$ 1,362
$ 1,243
$ 2,598
$ 2,432
CASH PAID FOR TAXES
$ 569
$ 845
$ 647
$ 906
As of June 30, 2024, cash, cash equivalents and restricted cash includes $40 million of restricted cash included in prepaid expenses and other current assets in the consolidated balance sheets.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED SUMMARY OF OPERATING STATISTICS
(in thousands, except per customer and penetration data)
Approximate as of
June 30,
2024(c)
March 31,
2024(c)
December 31,
2023 (c)
June 30,
2023(c)
Footprint
Estimated Passings (d)
57,774
57,351
56,986
56,209
Customer Relationships (e)
Residential
29,615
29,797
29,904
30,009
SMB
2,222
2,219
2,222
2,219
Total Customer Relationships
31,837
32,016
32,126
32,228
Residential
(182)
(107)
(108)
13
SMB
3
(3)
(2)
4
Total Customer Relationships Quarterly Net Additions
(179)
(110)
(110)
17
Total Customer Relationship Penetration of Estimated Passings (f)
55.1 %
55.8 %
56.4 %
57.3 %
Monthly Residential Revenue per Residential Customer (g)
$ 120.77
$ 120.48
$ 119.41
$ 120.25
Monthly SMB Revenue per SMB Customer (h)
$ 165.28
$ 163.44
$ 162.38
$ 164.56
Residential Customer Relationships Penetration
One Product Penetration (i)
47.7 %
47.3 %
46.7 %
46.0 %
Two Product Penetration (i)
33.2 %
33.0 %
33.1 %
33.0 %
Three or More Product Penetration (i)
19.2 %
19.7 %
20.2 %
20.9 %
% Residential Non-Video Customer Relationships
57.1 %
56.0 %
54.8 %
53.1 %
Internet
Residential
28,318
28,472
28,544
28,549
SMB
2,049
2,044
2,044
2,037
Total Internet Customers
30,367
30,516
30,588
30,586
Residential
(154)
(72)
(62)
70
SMB
5
—
1
7
Total Internet Quarterly Net Additions
(149)
(72)
(61)
77
Video
Residential
12,718
13,111
13,503
14,071
SMB
591
606
619
635
Total Video Customers
13,309
13,717
14,122
14,706
Residential
(393)
(392)
(248)
(189)
SMB
(15)
(13)
(9)
(11)
Total Video Quarterly Net Additions
(408)
(405)
(257)
(200)
Voice
Residential
6,170
6,438
6,712
7,248
SMB
1,276
1,288
1,293
1,294
Total Voice Customers
7,446
7,726
8,005
8,542
Residential
(268)
(274)
(248)
(225)
SMB
(12)
(5)
(3)
4
Total Voice Quarterly Net Additions
(280)
(279)
(251)
(221)
Mobile Lines (j)
Residential
8,531
7,992
7,519
6,410
SMB
278
260
247
216
Total Mobile Lines
8,809
8,252
7,766
6,626
Residential
539
473
532
628
SMB
18
13
14
20
Total Mobile Lines Quarterly Net Additions
557
486
546
648
Enterprise (k)
Enterprise Primary Service Units (“PSUs”)
312
308
303
294
Enterprise Quarterly Net Additions
4
5
5
6
See footnotes on page 7.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CAPITAL EXPENDITURES
(dollars in millions)
Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Customer premise equipment (l)
$ 562
$ 576
$ 1,197
$ 1,113
Scalable infrastructure (m)
362
353
690
707
Upgrade/rebuild (n)
389
392
870
681
Support capital (o)
421
431
809
825
Capital expenditures, excluding line extensions
1,734
1,752
3,566
3,326
Subsidized rural construction line extensions
565
529
992
900
Other line extensions
554
553
1,086
1,072
Total line extensions (p)
1,119
1,082
2,078
1,972
Total capital expenditures
$ 2,853
$ 2,834
$ 5,644
$ 5,298
Capital expenditures included in total related to:
Commercial services
$ 382
$ 409
$ 757
$ 776
Subsidized rural construction initiative (q)
$ 567
$ 541
$ 994
$ 932
Mobile
$ 64
$ 82
$ 123
$ 159
See footnotes on page 7.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
FOOTNOTES
(a)
Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other (income) expenses, net and other operating (income) expenses, net such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
(b)
Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net.
(c)
We calculate the aging of customer accounts based on the monthly billing cycle for each account in accordance with our collection policies. On that basis, at June 30, 2024, March 31, 2024, December 31, 2023 and June 30, 3023, customers included approximately 79,400, 110,000, 135,800 and 128,600 customers, respectively, whose accounts were over 60 days past due, approximately 10,000, 42,600, 54,700 and 47,000 customers, respectively, whose accounts were over 90 days past due and approximately 13,500, 283,100, 286,000 and 229,200 customers, respectively, whose accounts were over 120 days past due. The decrease in accounts past due is predominately due to revisions to customer account balances associated with the end of the Affordable Connectivity Program, including balance write-offs and conversion to payment plans. Bad debt expense associated with these past due accounts was predominantly reflected in our consolidated statements of operations in prior periods.
(d)
Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and SMB and enterprise sites passed by our cable distribution network in the areas where we offer the service indicated. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.
(e)
Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video, voice and mobile services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units (“MDUs”) and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude enterprise and mobile-only customer relationships.
(f)
Penetration represents residential and SMB customers as a percentage of estimated passings. Penetration excludes mobile-only customers.
(g)
Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter and excludes mobile-only customer relationships.
(h)
Monthly SMB revenue per SMB customer is calculated as total SMB quarterly revenue divided by three divided by average SMB customer relationships during the respective quarter and excludes mobile-only customer relationships.
(i)
One product, two product and three or more product penetration represents the number of residential customers that subscribe to one product, two products or three or more products, respectively, as a percentage of residential customer relationships, excluding mobile-only customers.
(j)
Mobile lines include phones and tablets which require one of our standard rate plans (e.g., “Unlimited” or “By the Gig”). Mobile lines exclude wearables and other devices that do not require standard phone rate plans.
(k)
Enterprise PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
(l)
Customer premise equipment includes equipment and devices located at the customer’s premise used to deliver our Internet, video and voice services (e.g., modems, routers and set-top boxes), as well as installation costs.
(m)
Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers or provide service enhancements (e.g., headend equipment).
(n)
Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including our network evolution initiative.
(o)
Support capital includes costs associated with the replacement or enhancement of non-network assets (e.g., back-office systems, non-network equipment, land and buildings, vehicles, tools and test equipment).
(p)
Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
(q)
The subsidized rural construction initiative subcategory includes projects for which we are receiving subsidies from federal, state and local governments, excluding customer premise equipment and installation.
View original content to download multimedia:https://www.prnewswire.com/news-releases/charter-announces-second-quarter-2024-results-302207276.html
SOURCE Charter Communications, Inc.
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Come Back to Firefox: Mozilla launches its most ambitious campaign yet to bring people back to the independent alternative to big tech browsers
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October 25, 2026By
As tracking and unwanted AI reshape the web, Firefox reunites the internet’s original viral icons to make the case for a browser that puts people back in control.
SAN FRANCISCO, Oct. 25, 2026 /PRNewswire/ — In its new campaign, Come Back to Firefox, the independent browser by Mozilla reunites personalities behind some of the early internet’s biggest viral videos and memes for one simple message: The internet you loved is still here, and Firefox is the easiest way back.
This multi-market campaign is aimed at people who once used Firefox and left. While it nods to the past, Firefox continues to evolve, giving people more reasons to love and rediscover it today. It arrives after a transformative year for the browser:
Business growth and partnerships: A dedicated Enterprise browser giving organizations expert support and control over their data. Technical partnerships with NVIDIA and Mistral, extending what Firefox can do from gaming to AI.
Increased protection and control: New products and features shipped including a free built-in VPN to help keep browsing private, with no extra download or cost. AI Controls, to let people decide when and whether to use AI, and an Ad Blocker for Firefox on iOS for fewer ads and trackers.
Brand and culture: A new modern design, a first sports partnership with Wrexham AFC and World Cup presence connecting Firefox to one of the year’s biggest cultural moments.
“Firefox was there then, we’re here now, and what we stand for matters more than ever,” said John Solomon, Chief Marketing Officer at Mozilla. “People who left Firefox years ago will find a browser that’s more private and gives them more control, including over AI.”
The Campaign
Come Back to Firefox brings together some of the world’s most memorable internet icons: Numa Numa Guy, Bad Luck Brian, Overly Attached Girlfriend, Kelly of “Shoes” fame, Where the Hell Is Matt?, Annoying Orange, Apparently Kid, Tay Zonday, Chuck Testa, Success Kid, and Evolution of Dance. Each takes on a modern frustration with humor:
Overly Attached Girlfriend may have wanted to know everything about you, but your browser shouldn’t.Dancing Matt boogied all over the world, without any corporations tracking him or selling his personal data.And while Annoying Orange is still incredibly annoying, he’s not as annoying as forced AI features.
The campaign launches in the United States Sunday, October 25th, with two distinct 30-second commercials airing on NBC. Next, it rolls out in Germany, France, and the United Kingdom.
“Being on set was a reminder of why those moments mattered,” said Solomon. “Ordinary people making things on the internet that made it feel so surprising and fun, and that’s the feeling we wanted to bring back.”
The campaign was created by award-winning independent agency We Believers, and brought to life by directing collective Sunny Sixteen and production company nobodys. Together, they meticulously recreated each performance, look, and even the sets from the original videos, taking each internet personality back to where their story began.
“We wanted an idea that truly belongs to Firefox, a challenger browser that helped shape the internet’s golden years and stayed independent as Big Tech took over,” said Gustavo Lauria, Founder and CCO at We Believers.
The campaign is one of Firefox’s most ambitious yet but is rooted in what has always set the browser apart from Big Tech: its commitment to putting people before profits and giving them more control over their online experience. Now, Firefox says it’s never been a better time for people who once used the browser to take another look.
About Firefox
Firefox is a web browser developed by Mozilla, built to give people more choice and control over their online experience. With built-in tracking protection, customization options, and a commitment to an open internet, Firefox offers an alternative to browsers developed by the world’s largest technology companies. Learn more at firefox.com/welcomeback.
View original content to download multimedia:https://www.prnewswire.com/news-releases/come-back-to-firefox-mozilla-launches-its-most-ambitious-campaign-yet-to-bring-people-back-to-the-independent-alternative-to-big-tech-browsers-302918568.html
SOURCE Mozilla
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Best AI Tools for Small Business Marketing (2026): CapCut Featured for Creating Professional Video and Visual Content by Expert Consumers
Published
1 hour agoon
October 25, 2026By
NEW YORK, Oct. 25, 2026 /PRNewswire/ — Expert Consumers has recognized CapCut in its 2026 coverage of the best AI tools for small business marketing, highlighting the platform’s collection of AI-powered features for creating and editing video, images, audio, and other visual content. The recognition reflects growing interest in tools that support practical marketing activities, including campaign development, promotional content production, and adapting creative assets for different digital channels.
Best AI Marketing Tools
Seedance 2.0 – an AI video generation model that creates videos from text prompts or imagesSeedream – an AI image generation model that creates high-quality visuals from text prompts
Small businesses face growing pressure to maintain an active digital presence while managing limited time and resources. From product photography and promotional videos to social media graphics and campaign materials, effective marketing depends on a steady supply of relevant, engaging content. Artificial intelligence is creating new ways to simplify these tasks and help businesses turn creative ideas into usable marketing assets.
CapCut provides a range of AI-assisted capabilities that support several stages of content production. These include prompt-based video generation, AI image creation, background removal, image expansion, music generation, and photo animation. For small businesses managing marketing internally, these functions offer options for developing creative assets without relying entirely on manual production processes.
AI Video Generation Supports Promotional Campaigns
Video is an important format for demonstrating products, explaining services, and introducing new offerings. Small businesses can use video across social media, websites, digital advertisements, and online product pages. Producing content regularly, however, can require considerable planning and editing.
CapCut’s Seedance 2.0 AI video generator offers a prompt-based approach to video creation. Users can describe a creative concept and generate video content that serves as a starting point for further editing.
For a small retailer preparing a product promotion, AI-generated video can help explore different visual approaches before a final concept is selected. A service provider could use the same process to develop ideas for an explainer or an introductory campaign.
Prompt-based generation can reduce the effort involved in developing initial concepts. Generated material still requires review to ensure the finished video accurately represents the business, communicates the intended message, and follows relevant brand guidelines.
AI Image Creation Helps Develop Marketing Materials
Visual content plays a central role in how businesses present products and services online. Promotional graphics, campaign imagery, and social media visuals need to communicate a clear message while maintaining a recognizable style.
CapCut’s Seedream AI image generator enables users to generate images from text prompts. The tool can support concept drafts, campaign planning, and experimentation with different visual directions before final assets are prepared.
For example, a small business planning a seasonal campaign could explore different visual themes and compositions during the early planning stage. These drafts can help establish a creative direction before additional time is spent refining the final materials.
CapCut’s GPT Image 2 provides another option for generating images from natural language instructions. The feature can support the development of promotional imagery, marketing graphics, and other visual assets.
AI image generation gives businesses more opportunities to test creative ideas during campaign development. However, generated images should be checked for visual errors, accurate product representation, and consistency with the intended brand identity before publication.
Image Editing Simplifies Content Preparation
Creating new marketing assets is only part of the production process. Existing photographs and graphics often need adjustments before they are suitable for different platforms.
CapCut’s AI background removal tool helps isolate subjects from their original backgrounds. This can simplify the preparation of product photographs, promotional graphics, and other images that require a different visual setting.
For a small retailer, background removal can make it easier to prepare product images for online listings or promotional materials. Separated subjects can be incorporated into new compositions without recreating the entire image.
The AI Image Extender addresses a separate challenge: adapting images to different dimensions. The tool generates additional visual content beyond an image’s original boundaries, helping users adjust compositions without relying entirely on cropping or stretching.
A campaign may require square graphics for social media, vertical visuals for mobile viewing, and horizontal banners for a website. Image expansion provides another option for adapting existing assets to those formats.
These editing capabilities can help reduce repetitive production work while supporting a more consistent presentation across marketing channels.
AI Audio and Photo Animation Expand Creative Options
Marketing content often combines visuals, movement, and sound. Music can establish a mood, support storytelling, and help create a more complete video presentation.
CapCut’s SeedMusic AI audio generator supports AI-assisted music creation based on prompts. The feature can help develop audio for promotional videos, product demonstrations, and social media content.
Generated music offers a starting point for matching audio to a campaign’s intended atmosphere. Before publication, businesses should review the output and confirm that the applicable usage terms cover the intended commercial application.
CapCut also provides a Photo-to-3D tool that transforms still images into more dynamic visual presentations. This capability can help repurpose existing photography for promotional videos, social posts, and digital campaigns.
For small businesses with an existing collection of product images, adding movement can provide another way to present familiar assets. The approach also expands the range of creative formats available without requiring every campaign to begin with new photography.
Connecting AI Tools to Everyday Marketing Workflows
The practical value of AI-powered creative tools depends on how effectively they address specific marketing needs. Small businesses do not necessarily need every available feature for every campaign. Selecting tools according to content requirements can help keep production focused.
A retailer might begin with Seedream to explore campaign concepts, then use GPT Image 2 to generate supporting visuals. Background removal can help prepare product photography, while AI Image Extender can adapt selected assets to different layouts. Seedance 2.0 can support video concept development, with SeedMusic offering an option for accompanying audio.
A service-based business might prioritize short promotional videos, explanatory graphics, and social media content instead. The same collection of tools can support different production requirements depending on the business model and campaign objectives.
Using AI does not remove the need for creative direction or quality control. Content should be checked for factual accuracy, appropriate product representation, brand consistency, and compliance with advertising requirements. Human review also helps ensure that generated assets serve a clear marketing purpose rather than adding unnecessary material to a campaign.
AI-Assisted Marketing for Small Businesses
Interest in the best AI tools for small business marketing reflects the need for practical ways to produce and adapt digital content. Businesses must balance the demand for regular campaign updates with the resources available for creative production.
Expert Consumers’ recognition of CapCut highlights the platform’s range of AI-assisted functions for video generation, image creation, editing, audio production, and photo animation. These capabilities offer small businesses several options for developing marketing materials across digital channels.
As AI becomes more integrated into content production, effective use will depend on matching the right tools to specific tasks. With clear campaign objectives, careful editing, and appropriate review, CapCut’s creative features can help businesses develop marketing assets while reducing some of the repetitive work involved in preparing content for publication.
Visit the Expert Consumers site for the full review.
About CapCut
CapCut is an AI-powered photo and video editing platform designed to make high-quality video creation accessible across devices. The platform supports creators, businesses, and everyday users with tools for video editing, AI video generation, captions, templates, audio, and visual editing. CapCut is available across mobile, web, desktop, and iPad experiences, helping users create, edit, and prepare video content for social media, marketing, education, and personal projects.
About Better Business Advice: Better Business Advice covers the news and strategies driving modern business success. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided.
View original content:https://www.prnewswire.com/news-releases/best-ai-tools-for-small-business-marketing-2026-capcut-featured-for-creating-professional-video-and-visual-content-by-expert-consumers-302918043.html
SOURCE ExpertConsumers.org
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Beyond GRC: DigitalXForce Pioneers AI-Powered Risk Operations with Global X-ROC™ Rollout
Published
1 hour agoon
October 25, 2026By
Enterprise TRiSCM™ innovator advances Continuous Control Assurance, cyber risk quantification and real-time Risk Operations across global enterprises, transforming traditional GRC into proactive Digital Trust
DALLAS, Oct. 25, 2026 /PRNewswire/ — DigitalXForce, the AI-native Enterprise Trust, Risk, Security and Compliance Management (TRiSCM™) platform, today announced the continued global rollout of X-ROC™ (XForce Risk Operations Center), its AI-powered approach to continuous enterprise risk operations.
The expansion builds on DigitalXForce’s recognition as a Leader in two IDC MarketScape assessments, its 2026 Cyber Defense Magazine innovation honors, and increasing enterprise demand for automated, continuous approaches to managing cybersecurity, governance, risk and compliance.
Unlike traditional Governance, Risk and Compliance (GRC) platforms that primarily document risks and manage periodic assessments, DigitalXForce’s X-ROC combines Continuous Control Assurance (CCA), Continuous Control Monitoring (CCM), Cyber Risk Quantification (CRQ), AI-powered risk intelligence and remediation orchestration into an integrated risk operations model.
The objective is to help enterprises move beyond knowing whether controls are documented to continuously understand whether controls are operating effectively, which exposures matter most, and what action should be taken next.
New Research Reveals Why Traditional Security Scores Are Not Enough
The company’s DigitalXForce Security Posture Benchmark 2026, analyzing published security control responses from 2,112 companies, reveals a significant disconnect between high-level compliance scores and underlying security exposure.
Key findings include:
98.9% median control implementation: The median company reported 98.9% of applicable security controls in place, yet significant control gaps remained.54.9% reported data protection gaps: More than half of companies reported at least one missing control in the Data Protection and Encryption domain.52.0% reported encryption and key management gaps: Among 2,098 companies responding, 52.0% reported at least one control not in place.42.3% reported configuration and asset management gaps: Demonstrating continued exposure in foundational security practices.26.7% reported full control implementation: More than one-quarter reported all applicable controls in place under the benchmark’s assessment model.
The benchmark evaluated responses against DigitalXForce’s proprietary model of 94 controls across 12 domains, with mappings to NIST SP 800-53, NIST Cybersecurity Framework 2.0 and CIS Controls v8.1.
These findings highlight an important enterprise risk challenge: a high security or compliance score does not necessarily reveal which remaining control failures could create the greatest business impact.
DigitalXForce developed X-ROC to address this challenge by connecting control failures and changing risk conditions with supporting evidence, quantified business impact and accountable remediation workflows.
Read the research: https://digitalxforce.com/research/security-posture-benchmark-2026/
X-ROC: Bringing Operational Intelligence to Enterprise Risk
A Risk Operations Center (ROC) is an operating model designed to continuously identify, assess, prioritize, monitor and reduce enterprise risk.
While a traditional Security Operations Center (SOC) focuses on security threats and incidents, a Risk Operations Center focuses on the organization’s broader exposure, control effectiveness, business impact and risk remediation.
DigitalXForce X-ROC™ brings these capabilities together through an integrated operating model:
1. Continuous Risk Discovery and Monitoring
X-ROC ingests security posture changes, control failures, third-party risk events and other enterprise risk signals, connecting them with the underlying evidence.
2. Continuous Control Assurance and Automation
DigitalXForce CCA continuously validates control effectiveness through evidence collection, automated testing and ongoing monitoring. CCM provides the monitoring capability within CCA, tracking control conditions and associated risk signals.
3. AI-Powered Risk Intelligence
DigitalXForce’s proprietary AI engines, AI JedAI and XForce GPT, analyze risk signals, correlate related findings, support prioritization and generate business-oriented risk narratives and executive reporting, with analyst review.
4. Cyber Risk Quantification
Rather than prioritizing findings solely by technical severity, X-ROC incorporates quantified financial exposure and business impact to help organizations identify which risks deserve attention first.
5. Remediation Orchestration and Validation
X-ROC assigns risk ownership, tracks remediation against defined timelines and supports integration with enterprise workflow platforms such as ServiceNow and Jira.
Findings are validated through control retesting before closure, creating an evidence-based approach to risk reduction.
6. Executive Digital Trust Intelligence
X-ROC connects operational risk findings with broader enterprise trust, security, compliance and resilience reporting, helping CISOs, CROs, compliance leaders and boards understand the organization’s changing risk posture.
CEO Perspective: Redefining Enterprise Risk Operations
“X-ROC is redefining enterprise risk operations. By combining AI, continuous control assurance and risk intelligence, we’re helping global enterprises move from reacting to risk to staying ahead of it.”
— Lalit Ahluwalia, Founder & CEO, DigitalXForce
Global Enterprise Adoption of Continuous Risk Operations
DigitalXForce is advancing the adoption of X-ROC across its international enterprise customer ecosystem, supporting organizations seeking to consolidate fragmented governance, cybersecurity, compliance and risk management operations.
X-ROC supports two operating models:
Enterprise-operated Risk Operations Center: Organizations operate X-ROC directly using DigitalXForce’s platform, workflows, integrations and risk intelligence capabilities.Managed Risk Operations: DigitalXForce operates the risk operations layer as a managed service, providing continuous monitoring, prioritization and reporting while customers retain ownership of remediation actions.
The platform supports cloud and hybrid deployment architectures, enabling organizations to address enterprise security, operational and regional data residency requirements.
This flexibility is particularly relevant to multinational organizations managing complex regulatory requirements, multiple business units, distributed technology environments and third-party ecosystems.
Independent Industry Recognition Reinforces DigitalXForce’s Momentum
DigitalXForce’s X-ROC strategy builds on broader industry recognition of the company’s Enterprise TRiSCM™ platform and AI-powered risk management innovation.
Dual IDC MarketScape Leader Recognition
DigitalXForce was positioned as a Leader in:
IDC MarketScape: Worldwide Governance, Risk, and Compliance Software Vendor Assessment, 2025 (Doc #US53615325, June 2025).IDC MarketScape: Worldwide Third-Party Risk Management Software 2026 Vendor Assessment (Doc #US53007725, September 2026).
These assessments evaluated vendor capabilities and strategies in their respective markets.
DigitalXForce’s recognition across both GRC and Third-Party Risk Management reflects its positioning across interconnected enterprise risk disciplines, supported by a unified platform architecture.
Cyber Defense Magazine Innovation Honors
DigitalXForce has also received recognition through the 2026 Cyber Defense Magazine Global InfoSec Awards, including innovation honors associated with AI TRiSCM, Automated GRC with Continuous Control Assurance, and X-ROC.
These recognitions contribute to DigitalXForce’s growing industry profile as it advances AI-powered governance, risk management and continuous assurance.
From GRC to Enterprise TRiSCM™: One Platform for Digital Trust
DigitalXForce’s Enterprise TRiSCM™ platform integrates 15 modules on a unified data layer, supporting more than 50 compliance frameworks and 250 technology integrations.
The architecture enables security, compliance, audit, risk and third-party risk teams to work from connected controls, shared evidence and continuously updated risk information rather than isolated tools and periodic assessments.
The platform is designed to enable five fundamental shifts:
From Periodic GRC → Continuous Control Assurance
From Fragmented Security Tools → Unified Enterprise Risk Intelligence
From Technical Severity → Quantified Business Risk
From Manual Remediation Tracking → Evidence-Based Risk Operations
From Compliance Reporting → Continuous Digital Trust
X-ROC serves as the operational layer of this strategy, connecting enterprise risk signals with prioritization, accountability and validated remediation.
Building the Future of AI-Powered Risk Operations
As enterprises accelerate adoption of cloud services, AI, autonomous technologies and complex third-party ecosystems, risk exposure is becoming increasingly dynamic.
DigitalXForce believes enterprise risk management must evolve accordingly.
The company’s vision is to make risk management a continuous operational capability rather than a periodic reporting exercise.
Through X-ROC, Continuous Control Assurance, AI-powered analysis and cyber risk quantification, DigitalXForce is working to establish a new operating model in which enterprises can identify emerging exposures, prioritize them based on business impact and verify that corrective actions are effective.
The SOC manages security incidents. X-ROC manages enterprise risk.
The future of GRC is not another dashboard. It is continuous, intelligent Risk Operations
About DigitalXForce — We Stop Risk Before It Strikes.
DigitalXForce, Industry’s first AI-Powered Enterprise TRiSCM (Trust, Risk, Security and Compliance Management) Platform, is pioneering the next generation of Automated GRC with Continuous Trust Assurance by converging AI, cybersecurity, compliance, operational resilience, and posture management into one unified Risk Intelligence platform. Designed with a modular and composable architecture, DigitalXForce delivers an integrated suite of capabilities spanning automated GRC, Enterprise Security Risk Posture Management (ESRPM), Third-Party Risk Management, Cyber Resilience, and Regulatory Compliance.
At the core of DigitalXForce is its AI-powered engine, which leverages intelligent agents, machine learning models, and a dynamic control library to autonomously monitor controls, map evidence, assess risks, and generate real-time insights. Trusted by global enterprises across healthcare, finance, critical infrastructure, and technology sectors, DigitalXForce delivers measurable value by reducing manual effort, accelerating audit readiness, and improving organizational resilience in today’s fast-evolving threat and compliance landscape.
Learn more about DigitalXForce at https://digitalxforce.com
Additional Resources
X-ROC Platform: https://digitalxforce.com/products/ai-powered-xforce-risk-operations-center/2026 Security Posture Benchmark: https://digitalxforce.com/research/security-posture-benchmark-2026/What Is a Risk Operations Center: https://digitalxforce.com/what-is-a-risk-operations-center/
View original content to download multimedia:https://www.prnewswire.com/news-releases/beyond-grc-digitalxforce-pioneers-ai-powered-risk-operations-with-global-x-roc-rollout-302918726.html
SOURCE DigitalXForce Corporation
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