Spectrum TV And Internet Parent Charter Communications Delivers Better-Than-Expected Q4 Results

Financial Performance - Charter Communications reported fourth-quarter earnings per share of $10.10, exceeding analysts' consensus of $9.22, with revenue reaching $13.9 billion, slightly above the forecast of $13.88 billion [1] - The company experienced a growth of 37% in residential mobile service revenue and a 26% increase in ad sales revenue, contributing significantly to overall revenue growth [3] Subscriber Trends - Charter lost 177,000 internet customers, finishing the period with 30.1 million internet subscribers [2] - The company also lost 123,000 video subscribers, ending 2024 with 12.3 million subscribers, a decline of nearly 9% from the end of 2023 [2] - Despite these losses, Charter remains the number one pay-TV operator in the U.S., although competitors like YouTube TV are gaining market share [2] Market Reaction - Following the earnings announcement, Charter's shares rose by 3% in pre-market trading, recovering from a 6% decline the previous day due to concerns over broadband subscriber losses reported by Comcast [4] - Over the past year, Charter's shares have decreased by 12% [4] Industry Dynamics - The company is actively revising the role of distributors in response to the impact of cord-cutting, highlighted by a notable carriage negotiation with Disney that resulted in a temporary blackout of ESPN and ABC [5] - Charter, along with other major providers, faces challenges from large telecom firms like AT&T and Verizon, which are attracting customers with fiber-based internet services [5]