Charter shares plummet as CFO warns of potential decline in fourth quarter broadband subscribers
Charter Shares Plummet as CFO Raises Concerns over Subscriber Losses
In a shocking turn of events, shares of Charter Communications dropped by more than 8% yesterday after Chief Financial Officer Jessica Fischer expressed concerns about potential subscriber losses in the upcoming fourth quarter. The news also had an impact on Charter’s competitor, Comcast, which saw its stock decrease by more than 3%.
Fischer revealed that the company experienced a decline in subscribers in October and November, attributing the losses in part to a dispute with Disney and higher interest rates. This unexpected drop in subscribers comes as a surprise, especially since in the third quarter, Charter managed to gain over 60,000 broadband customers, while Comcast reported a loss of 18,000 subscribers.
Charter has been making significant investments to expand its broadband coverage to underserved and rural communities. In fact, they spent a massive $1.1 billion on line extensions in the third quarter alone. However, the current housing market conditions, including rising interest rates and limited supply, have impacted the value of these expansions.
Despite these challenges, Fischer remains optimistic about Charter’s potential for subscriber growth. She believes that a potential rebound in the housing market and the inclusion of Disney+ in some Spectrum plans will act as driving factors for the company’s growth. Fischer’s optimism provides a ray of hope for investors, who are eagerly waiting to see how Charter’s fortunes will unfold in the coming months.
It is important to note that Comcast, Charter’s competitor, owns NBCUniversal, which is the parent company of CNBC. The decline in Comcast’s stock after Charter’s revelations indicates that the concerns raised by Fischer are resonating throughout the industry.
The news of Charter’s potential subscriber losses has sent shockwaves through the market. Investors and industry analysts are closely watching the developments at Charter, trying to grasp the implications of Fischer’s remarks. Will Charter manage to overcome these challenges and regain its subscriber base? Only time will tell.
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