Charter Targets $2 Billion in Costs as Customer Losses Deepen
The cable operator plans an 18-month overhaul after losing internet customers and reporting quarterly revenue below analysts’ expectations.
Key takeaways
- Charter plans $2 billion in annualized cost cuts over 18 months.
- The company lost 233,000 internet customers in the third quarter on a pro forma basis.
Charter Communications plans to cut $2 billion in annualized operating costs over the next 18 months, as it overhauls its business to revive growth. The company said it will change how it markets and sells internet service and rely more on mobile and video products to attract and retain customers.
The planned cuts are separate from more than $1 billion in anticipated savings from Charter’s acquisition of Cox Communications, which closed on August 19. CEO Chris Winfrey said Charter had not achieved the customer growth and performance it expected.
Charter lost 233,000 internet customers in the third quarter on a pro forma basis, compared with 171,000 a year earlier. Revenue was $14.9 billion, below analysts’ average estimate of $15.03 billion, while the company reported a $20.50-per-share net loss, mainly due to a $6.3 billion franchise impairment charge.
Charter shares were down 2.7% in morning trading, according to the source. As of 16:56 UTC Friday, they traded at $119.55, down 5.01% since the previous close.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
