Charter Loses 294K Video and 110K Broadband Subs in Third Quarter, But Mobile Keeps Growing

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As a long-time subscriber of Spectrum, I’ve witnessed the ebb and flow of their service offerings over the years. It’s been a rollercoaster ride, to say the least! The latest quarter results are a mixed bag for me. While it’s disheartening to see the continued decline in pay-TV subscribers, I can’t help but feel a sense of relief knowing that the Disney showdown is now behind us. I must admit, my DVR was empty during those two weeks!

As a gamer, I’m always keeping an eye out for updates from my favorite service provider, Spectrum, which is owned by a significant portion by John Malone through Liberty Broadband. This past Friday, they shared their third-quarter results of the year 2024, and here are some highlights:

Under the guidance of CEO Chris Winfrey, the company recently revealed that it had shed approximately 294,000 pay-TV subscribers in its most recent quarter. This is a decrease compared to the loss of 327,000 subscribers during the same period last year, which was influenced by a significant disagreement with The Walt Disney Company. The recent decline consisted of 281,000 residential customers and 13,000 small and medium-sized business accounts. As of September, Charter boasted over 13 million pay-TV customers in total.

In the third quarter of 2023, it suffered a loss of 327,000 video subscribers, largely due to the prolonged dispute with Disney that spanned a fortnight. Following the resolution, the companies negotiated a fresh agreement, which stipulated that Disney+ would be integrated into Charter’s primary video package, while some Disney cable channels like Freeform, Disney Junior, and Disney XD were taken off the air.

In Q4 of 2023, Charter experienced a decrease of 110,000 subscribers in its broadband service, contrasting with an increase of 63,000 subscribers in the same quarter the previous year. By the end of September, they had a total of 30.3 million broadband subscribers.

Mobile remained a growth business for Charter. It recorded 545,000 net additions in total mobile lines in the latest quarter after adding 594,000 in the year-ago period. That took its total mobile lines count to 9.4 million.

In the third quarter, the company’s revenue reached $13.80 billion, marking a 1.6% increase compared to the same time last year. This growth was primarily fueled by a 37.6% rise in residential mobile service revenue and a 1.7% boost in residential Internet revenue. The quarterly earnings also rose by 2.0%, amounting to $1.28 billion. Additionally, another significant profitability indicator, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), saw an increase of 3.6% to reach $5.65 billion.

During the third quarter, our performance was strong, reinforcing our operational strategy and investments we’ve made. Going forward, we boast the most superior network, capable of providing smooth connectivity and entertainment across all our operating regions. Our pricing and packaging offer savings to customers along with top-quality products, while our service capabilities and ongoing investment remain largely untapped as a competitive edge.

Malone is considering a potential merger of Charter with his company, Liberty Broadband. This firm holds a significant share in cable giant Charter, along with GCI – the leading communications provider in Alaska. On September 23rd, Liberty Broadband made public that Charter had submitted an initial merger proposal, to which they responded with their own counterproposal.

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2024-11-01 14:24