Shares of Charter Communications fell over 8% in premarket trading after the cable company announced a decrease in quarterly earnings and revealed a loss of internet customers in the final quarter of the year.
Loss of Internet Customers
Charter reported a loss of 61,000 internet customers in the fourth quarter, with the decline primarily coming from residential customers. This was a surprise to analysts who had anticipated the company to add 6,000 internet customers during this period. In December, Chief Financial Officer Jessica Fischer had already warned that the company may see a loss in internet customers due to short-term challenges.
Industry Trends
Charter’s rival, Comcast, also reported a loss of 34,000 U.S. broadband customers in the fourth quarter. These trends suggest that the industry is currently facing challenges in retaining internet customers.
Quarterly Earnings
In addition to the loss of customers, Charter reported fourth-quarter earnings of $7.69 per share, falling short of the expected $8.76 per share forecasted by analysts surveyed by FactSet.
