Charter Communications experienced a sharper drop in internet subscribers during the first quarter than Wall Street analysts had predicted, as wireless companies launched aggressive marketing campaigns to lure customers away from traditional cable internet services.
The telecommunications giant saw its stock price fall approximately 3% in early Friday trading following the earnings announcement.
During the three-month period, Charter lost 120,000 broadband subscribers, exceeding analyst projections of roughly 100,000 customer departures, based on data from Visible Alpha.
However, the company performed better than expected in retaining television subscribers, losing 60,000 video customers compared to forecasted losses of nearly 86,000. Charter attributed this improvement to streamlined pricing structures and package offerings. The company maintained 12.5 million total television subscribers by the end of March.
Industry experts point to intensified competition from major wireless carriers who are heavily promoting fixed-wireless home internet services as an alternative to cable broadband, creating significant pressure on traditional cable companies.
Despite subscriber losses, Charter’s financial performance exceeded expectations, generating $13.60 billion in quarterly revenue compared to analyst estimates of $13.55 billion, according to LSEG data.
The company’s mobile division added 368,000 new lines during the quarter, though this fell short of the anticipated growth of approximately 432,000 new subscribers.
In related corporate news, the Federal Communications Commission granted approval in February for Charter’s massive $34.5 billion acquisition of Cox Communications.
