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(Bloomberg) -- Charter Communications Inc. lost 177,000 broadband subscribers in the fourth quarter, worse than expected amid a very competitive market for internet access.
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Analysts had been expecting a loss of 142,000 residential and business internet customers, according to data compiled by Bloomberg. Charter, which operates under the Spectrum brand, parted ways with 123,000 home-video customers compared with estimates for losses of 270,200.
Charter is fighting competition from the likes of AT&T Inc., Verizon Communications Inc. and T-Mobile US Inc., which are siphoning off home internet subscribers. It’s also battling an industrywide shift by consumers from pay-TV subscriptions to streaming. Charter is the largest cable-TV provider in the US with 31.5 million customers.
Cable and telecom companies are moving toward a “convergence” model, where they offer internet, mobile phone and other services. Charter added 529,000 new mobile lines in the quarter, while rival Comcast Corp. reported 310,000 new wireless lines on Thursday.
Overall, revenue at Stamford, Connecticut-based Charter rose 1.6% to $13.9 billion in the quarter, meeting analysts’ projections. Earnings per share, after adjustments, were $10.32, surpassing the projected $9.40.
Comcast’s earnings a day earlier beat Wall Street’s expectations for revenue and profit but still reflected subscriber losses in its broadband unit, concerning investors. Comcast shares tumbled 11% to their lowest in more than two years, also dragging down Charter’s stock.
Rivals have been investing in fiber-optic networks to offer more high-speed access to customers. They’ve also been expanding their wireless internet offerings.
Speaking about the broadband market on an investor call Thursday, Comcast President Michael Cavanagh said “competitive conditions remain intense.” He added that there were “no signs of this changing in the near term.”
Charter is planning a major marketing push this year to promote more than 10 streaming services it will offer at no additional cost to customers — launching an ambitious strategy to head off cancellations and attract new subscribers. It’s also increasing efforts on bundling strategies for internet, voice and video packages that can help curb losses from cable programming customers.