Nov 6 (Reuters) – Charter Communications said on Friday it would cut $2 billion in annualized operating costs over the next 18 months, overhauling how it sells and runs its business as it tries to revive growth.
Shares of the company fell more than 5% in premarket trading. They have fallen 39.7% so far this year through Thursday’s close.
Charter said it would rework how it markets and sells its core internet service and lean more on its mobile and video products to add customers and improve retention.
The savings are in addition to more than $1 billion in anticipated synergies from its acquisition of Cox Communications, which closed on August 19.
The $34.5 billion deal, including debt, combined two of the largest US cable and broadband operators as they fight streaming companies and mobile carriers for customers.
Charter’s cable TV business faces competition from streaming services such as Netflix and Disney+.
In broadband, carriers including Verizon and T-Mobile are pushing fixed wireless, which delivers home internet over mobile networks, to win customers from cable.
Charter lost 233,000 internet customers in the third quarter on a pro forma basis, versus a loss of 171,000 a year earlier, while video customers fell by 77,000, compared with a decline of 121,000.
Reuters reported on Tuesday that Indian billionaire Mukesh Ambani’s Jio Platforms has held talks with Charter and Comcast about licensing its wireless broadband technology in exchange for potential stakes in the businesses.
Charter on Friday reported third-quarter revenue of $14.9 billion, below analysts’ average estimate of $15.03 billion, according to LSEG data.
It posted a net loss of $20.50 per share, versus income of $8.50 last year, driven mainly by a $6.3 billion franchise impairment charge.
The company had total debt of $108.6 billion at the end of September, against cash of $573 million.
(Reporting by Anzar Mehraj in Bengaluru; Editing by Maju Samuel)
