Charter’s high-speed Internet subscribers
Amid losing pay-TV customers, Charter Communications’ (CHTR) cable segment is gaining from its Internet business. Charter’s residential broadband revenues rose ~8.6% YoY (year-over-year) to $4.0 billion in the first quarter.
In the first quarter, Charter gained 428,000 total high-speed Internet customers—net additions of 398,000 residential high-speed Internet customers and additions of 30,000 business services high-speed Internet customers. Analysts expected Charter to see net additions of 344,000 residential high-speed Internet customers in the first quarter. The company’s total broadband customers rose ~5.5% YoY to 25.7 million at the end of March 31.
During Charter’s first-quarter earnings conference call, the company’s management said, “The year-over-year improvement was primarily driven by a decline in churn as our product, billing, service and collection activities improved.”
Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
In the first quarter of 2018, Charter gained 367,000 high-speed Internet customers—net additions of 334,000 residential high-speed Internet customers and additions of 33,000 business services high-speed Internet customers.
Other Internet providers
As customers shift away from traditional pay-TV plans and opt for cheaper streaming services from Netflix and Amazon’s Prime video, pay-TV companies including Charter and Comcast (CMCSA) are focusing on their high-speed Internet business to survive in the rapidly changing media landscape.
Charter and Comcast managed to post better-than-expected broadband subscriber net additions in the first quarter. Comcast added a total of 375,000 high-speed Internet customers in the first quarter—compared to analysts’ expectations of 353,000 customer additions.