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Charter Communications Inc () says the number of its broadband subscribers could decline in the fourth quarter. Its shares are down nearly 10% at writing.
Charter Communications lost subscribers in OctoberThe telecommunications giant added over 60,000 subscribers in its latest reported quarter.But then the dispute with Disney () saw it lose broadband customers in October – a weakness that continued in November as well, as per Jessica Fischer – the Chief Financial Officer of Charter Communications.
I can certainly see that it’s likely that we could end up with negative internet net adds inside of Q4.
She made those remarks today at the UBS Global Medica Communications Conference on Tuesday. Shares of the Stamford-headquartered firm are now down more than 20% versus their year-to-date high at writing.
Housing market weakness has been a bane for $CHTRCharter Communications spent over $1.0 billion in the third quarter on line extensions to cover rural or otherwise underserved communities.But that isn’t helping a lot for now since higher interest rates are keeping people unwilling to buy a house. Last week, Fed chair Jerome Powell said it’s “premature” to expect aggressive rate cuts in 2024 ().Nonetheless, CFO Fischer is convinced that Charter Communications will soon start to grow its subscriber number again, especially once the housing market rebounds. The recent with Disney will likely help on that front as well, she added.Wall Street currently has a consensus “overweight” rating on shares of Nasdaq-listed firm.More By This Author:Coinbase Stock Is Not Out Of Juice Yet: Needham Analyst S&P 500 Forecast After The JOLTS Data Today BTC/USD potential reversal: shorting Bitcoin in an uptrend
