July 23 (Reuters) – Charter Communications on Friday reported steeper-than-expected losses in its quarterly broadband customer base, as traditional cable internet faces stiff competition from telecom rivals that have doubled down on promotional offers.
The customer declines came even as Charter offered customizable bundles that provide internet, television and mobile services in a single plan. Shares of the company fell nearly 4% in premarket trading following the results.
Here are more details on Stamford, Connecticut-based Charter Communications’ second-quarter results:
• The company lost 172,000 broadband customers during the three months ended June 30, compared with estimates for a loss of 140,712 users, according to Visible Alpha.
• At the end of the quarter, Charter served 29.4 million internet customers.
• U.S. wireless carriers have been offering bundled wireless-broadband plans, piling more competitive pressure on cable operators like Charter.
• Charter’s video customers decreased by 21,000, fewer than the estimated loss of 63,202 users, helped by improved pricing plans and the inclusion of ad-supported versions of streaming apps such as Disney+ and HBO Max in its video packages.
• The broadband and cable TV provider reported total revenue of $13.53 billion for the second quarter, just a touch above estimates of $13.51 billion, according to data compiled by LSEG.
• Net income attributable to Charter shareholders declined slightly to $1.29 billion.
• The company added 406,000 mobile customers, better than expectations of 382,706, per Visible Alpha, thanks to its bundling strategy.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shreya Biswas)
