Charter Communications Inc. earnings missed Wall Street estimates as the cable giant warned that more customers are having trouble paying their bills.
(Bloomberg) — Charter Communications Inc.
earnings missed Wall Street estimates as the cable giant warned that more customers are having trouble paying their bills.
- Profit was $7.38 a share in the third quarter, while analysts were looking for $8.33 on average.
Charter said Friday that higher bad debt as well as increased fuel and freight costs are making it more expensive to service customers. Marketing costs also rose due to more staffing and better pay, the company said.
- See more details.
Key Takeaways
- Higher bad debt is another alarming sign for the US economy amid widespread inflation and sluggish spending.
Charter said most of its overdue accounts were customers who participated in government-assistance programs that included video services, and they are downgraded to a fully subsidized Internet-only service.
- Charter added 61,000 residential broadband subscribers in the quarter, reversing a loss of 42,000 in the prior quarter.
That was better than analysts had projected and could point to the beginning of a recovery. The company has been losing customers to streaming services and new broadband offers from phone companies.
- The TV business lost 211,000 subscribers, more than analysts had estimated.
The results come a day after cable peer Comcast Corp. reported better-than-expected earnings, despite posting a record loss of more than a half a million video subscribers. Cable operators have been raising prices on their TV and internet offerings, even as they face new competitive threats.
- In wireless, Charter added 396,000 new mobile-phone customers in the quarter, topping the 338,000 average estimate.
That segment is the Stamford, Connecticut-based company’s biggest area of growth.
Market Reaction
- Charter shares were little changed in early trading Friday. The stock is down more than 45% this year, compared with a 36% decline for Comcast.
Get More
- Read the statement.
- See Charter estimates.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
