Charter Communications'

(CHTR) - Get Report

loss ballooned from a year ago, as the company recorded a one-time charge to cover a lawsuit settlement and the elimination of a minority interest in a subsidiary required the company to absorb about $200 million in additional losses.

St. Louis-based Charter lost $415 million, or $1.39 a share, in the three months ended June 30, compared with a loss of $37 million, or 13 cents a share, a year ago. Revenue rose 2% from a year ago to $1.24 billion. The latest quarter included an $85 million charge to cover a class-action settlement, as well as the $200 million of losses that had previously been allocated to minority interest.

The company said it added 407,300 high-speed data customers from a year ago, while average monthly revenue per data customer rose 4% from the year-ago, pro forma level. Still, the company said it lost analog and digital video customers in the quarter, due to seasonality combined with video price increases and heightened competition.

On the cost side, second-quarter operating expenses were $759 million, up 9% on a pro forma basis from a year ago, reflecting a 10% rise in programming costs, a 9% increase in service costs and a 29% increase in marketing costs.

Adjusted earnings before interest, taxes, depreciation and amortization totaled $480 million in the latest quarter, up 1.5% on a pro forma basis from a year ago, while net cash flow from operating activities for the second quarter of 2004 was $53 million, compared to $123 million for the year-ago quarter. The decline reflected a $59 million increase in cash interest expense and a $6 million change in operating assets and liabilities.

The stock was down 28 cents, or 9%, to $2.80 in premarket trading.