Charter Reports Lower Q1 Profit While Losing 237,000 Video Subs

Charter Communications logo on a wall
(Image credit: Charter)

Charter Communications reported lower first-quarter profits as cord-cutting continued to cut into its total video subscribers.

Net income slipped to $1.02 billion, $6.74 billion in the quarter, compared to $1.2 billion, or $7.05 a share a year ago. The decline was driven by higher interest expenses and other nonoperating costs, the company said.

Revenue rose 3.4%, to $13.7 billion.

The company lost 237,000 residential video customers in the first quarter, nearly double the loss it registered a year ago. It finished the quarter with 14.3 million residential video customers and said it plans to begin deploying Xumo-branded streaming devices in late 2023. Xumo is a joint venture with Comcast.

Revenue from Spectrum video subs fell 2.1% to $4.3 billion from a year ago.

Total internet customers rose by 76,000 to 30.5 million at the end of the quarter.

Internet revenue rose 4.9%, to $5.7 billion, from a year ago.

Charter added 686,000 mobile lines, giving it a total of 6 million at the end of March.

Voice revenue fell 4.6% to $373 million.

Advertising sales fell 7.2% to $355 million

“In the first quarter, we made significant progress on our three key initiatives — evolution, expansion and execution,” Charter president and CEO Chris Winfrey said. “Our customer-first strategy is focused on delivering a differentiated, converged connectivity product that delivers the fastest speeds and saves customers money, while simultaneously driving growth and creating long-term value for Charter shareholders.”

Jon Lafayette

Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.