Equities
Charter loses 72,000 internet subscribers amid cable's competitive woes, despite growth in mobile lines and a slight revenue increase.
By Mackenzie Crow
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Charter Communications Inc. reported a significant loss of internet subscribers in the first quarter, with a net decrease of 72,000, which was notably higher than the 37,000 losses analysts had anticipated. This development is part of a broader trend within the cable industry, where companies like Charter and Comcast Corp. are facing intensified competition that hampers their ability to grow their internet subscriber base. Competitors such as Verizon Communications Inc. and T-Mobile US Inc. have been gaining ground with their fixed-wireless offerings, alongside fiber operators like AT&T Inc., contributing to the challenges faced by traditional cable companies in retaining and attracting internet subscribers.
Despite the downturn in internet subscribers, Charter Communications experienced growth in other areas of its business. The company reported a net addition of 486,000 total mobile lines during the same quarter, indicating a positive response to its wireless services. However, the video subscriber segment saw a decline, with Charter losing a net of 405,000 video subscribers, the majority of which were from its residential business. This loss in video subscribers reflects a continuing trend of consumers shifting away from traditional cable television in favor of streaming services and other digital entertainment platforms.
Charter's financial results for the quarter showed overall revenue at $13.7 billion, remaining flat compared to the year-earlier sum but aligning with analyst forecasts. The company's net income rose to $1.11 billion, or $7.66 a share, from $1.02 billion, or $6.74 a share, in the previous year, although this was slightly below the expected $7.78 per share. Adjusted EBITDA increased by 2.8% to $5.5 billion, meeting consensus expectations. Despite these financial metrics, Charter's stock experienced a downturn, dropping about 4% in premarket trading and marking a 33% decline over the course of 2024, positioning it among the biggest S&P 500 laggards for the year.
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