Charter Communications, a leading cable company, has reported lower earnings in the fourth quarter of 2022. The company faced challenges with its internet and video customers, as cord cutting accelerated during the period.
Financial Performance
Charter Communications recorded a fourth-quarter profit of $1.06 billion, translating to $7.07 per share. This is a decrease from the previous year’s earnings of $1.2 billion, or $7.69 per share. Analysts surveyed by FactSet had expected earnings of $8.76 per share.
However, despite the decline in earnings, the company’s revenue saw a slight increase of 0.3% to reach $13.71 billion. This surpassed analysts’ estimates, which had predicted revenue of $13.7 billion.
Customer Losses and Gains
During the quarter, Charter Communications lost 61,000 internet customers, primarily from the residential segment. This was significantly higher than the expected gain of 6,000 internet customers, according to analysts.
New Growth Opportunities
Despite these challenges, Charter Communications had a positive outcome with its wireless business. The company’s wireless division is rapidly growing and has positioned itself as a strong competitor to traditional cell carriers. Charter added 546,000 wireless customers during the quarter.
Overall, Charter Communications faced setbacks in its internet and video divisions but showed promising growth in its wireless segment, highlighting its ability to adapt to evolving market demands.
