Charter Shares Drop After Broadband Customer Losses
Charter lost 120,000 broadband users this quarter as competition from wireless carriers intensified. Shares fell 18% despite revenue beating analyst targets.
CHARTER COMMUNICATIONS INC-A reported a steeper-than-anticipated decline in its broadband subscriber base during the first quarter, as the cable giant faces mounting pressure from aggressive promotional tactics by telecommunications rivals. Following the announcement, the company's shares plunged more than 18%, reaching a near four-month low as investors reacted to the intensifying competition in the United States internet market.
Data compiled by Visible Alpha indicates that the company lost 120,000 broadband customers during the period, significantly exceeding the 100,036 losses projected by analysts. This erosion of the core internet business comes as wireless carriers ramp up the promotion of fixed-wireless home internet services, providing a lower-cost alternative to traditional cable connections.
