CenturyLink focuses on bundling and retention
The top cable companies continue to show strong momentum in the US (SPY) broadband space. Charter Communications (CHTR) and Comcast (CMCSA) adding the most broadband subscribers over the past few quarters, given the higher speeds. Let’s take a look at the performance of CenturyLink’s (CTL) Broadband segment, which is a key growth driver for the company.
CenturyLink has been refocusing on procuring higher-value bundle subscribers and putting comparatively less emphasis on standalone broadband customers. Bundled offerings provide a net positive NPV (net present value) driven by lower churn characteristics.
CenturyLink’s broadband customer acquisitions
In the first quarter, CenturyLink lost 58,000 broadband subscribers. As of the first quarter, the company served ~5.0 million broadband customers, an ~5.8% reduction YoY (year-over-year). However, CenturyLink’s management plans to address these subscriber losses with new lifetime pricing offers as well as higher-speed solutions.
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