Company Reports

Shares of US wireless carriers and tower firms traded lower after SpaceX claimed that it will use satellite dishes to build a wireless network capable of competing in the US wireless industry. SpaceX also claimed that it will launch 10 times as many V3 broadband satellites as V2.

Charter's second-quarter results followed the same weak pattern as its disappointing first quarter, with customer losses worsening year over year, revenue growth weakening, and margins contracting. Management again reduced its debt leverage target—to 3.5 times EBITDA from 3.5 to 3.75 times.

Broadband competition has increased over the past three years as fixed-wireless has gained share and fiber networks have expanded. SpaceX's Starlink has also emerged as a competitor, especially in less densely populated areas. We believe Charter can navigate this competitive environment and generate solid cash flow. But it will likely be a smaller firm in the future, which will require it to reduce its heavy debt load to maintain lender confidence. As the outlook for Charter's long-term prospects evolves, its shares will remain volatile.

Our confidence in Comcast and Charter's ability to maintain pricing discipline while stemming broadband customer losses has weakened. US cable firms showed no improvement in the first quarter, the FCC is preparing additional wireless spectrum for auction, and SpaceX poses an incremental threat.

Charter posted disappointing first-quarter results, with residential customer losses worsening and pricing weakening. Revenue declined 1% year over year, as political ad sales and growth in business services partially offset the weak residential performance.

Broadband competition has increased over the past three years as fixed-wireless broadband has gained share and fiber networks have expanded. We don't expect Charter to return to broadband customer growth soon. But we still believe it can drive modest growth and generate consistent cash flows, especially after its rural network expansion wraps up. However, with a relatively heavy debt load, Chater shares will remain volatile as it navigates the competitive environment.

We like Charter’s efforts to drive customer penetration by limiting price increases, improving customer service, and expanding its offerings to appeal to a variety of preferences. However, competition has increased over the past couple of years as fixed-wireless broadband has gained share and fiber networks expand, and we don't expect Charter to return to broadband customer growth soon. But we still believe it can drive modest growth and generate consistent cash flows, especially after its rural network expansion wraps up.

Charter's net broadband customer losses modestly improved in the fourth quarter, to 120,000 from 177,000 last year. Revenue declined 2.3% on a smaller customer base, lower political ad revenue, and incremental pricing pressure. Free cash flow increased 18% to $5 billion for the year.

We like Charter’s efforts to drive customer penetration by limiting price increases, improving customer service, and expanding its offerings to appeal to a variety of preferences. Competition has increased over the past couple of years as fixed-wireless broadband has gained share and fiber networks continue to expand, and we don't expect Charter will return to broadband customer growth soon. But we still believe it can drive modest growth and generate consistent cash flows, especially after its rural network expansion wraps up.

Charter lost 109,000 net broadband customers in the third quarter, comparable with a year ago, but the removal of government subsidies hurt retention in 2024. Revenue declined 0.9%, primarily on lower political ad revenue. Free cash flow was flat at $1.6 billion despite higher capital spending.

Charter's sales increased 0.6% during the second quarter, continuing the trend of very modest year-over-year growth that set in two years ago. Net broadband customer losses were 117,000, better than 149,000 a year ago. EBITDA increased slightly but would have been flat absent one-time items.

We like Charter’s efforts to drive customer penetration by limiting price increases, improving customer service, and expanding its offerings to appeal to a variety of preferences. Competition has increased over the past couple of years as fixed-wireless broadband has gained share and fiber networks continue to expand, and we don't expect Charter will return to broadband customer growth over the next two years. But we still believe it can drive modest growth and generate consistent cash flows.

Charter has agreed to merge with privately held Cox Communications, the third-largest cable company in the US. The move expands Charter's network footprint by approximately 20%, adding key markets such as Las Vegas and Phoenix, and consolidating the two largest providers in Southern California.

Charter lost 60,000 net broadband customers during the first quarter, the smallest number in over a year, while adding 514,000 net wireless customer lines. Total revenue increased 0.4% year over year despite the loss of political ad sales and the continued decline of the television business.

We generally like Charter’s efforts to drive customer penetration by limiting price increases, improving customer service, and expanding its offerings to appeal to a variety of preferences. Competition has increased over the past couple of years as fixed-wireless broadband has gained acceptance and fiber networks continue to expand. Still, we expect Charter will be able to drive modest growth and generate consistent cash flows.

On April 2, the Trump administration announced broad tariffs on US trading partners, sending markets tumbling. Shares of US wireless and fixed-line telecom providers are mostly unchanged, with phone carriers up slightly and cable providers seeing a small decline in April 3 trading.

Charter delivered 1.6% year-over-year revenue growth during the fourth quarter, driven by higher ad sales and wireless growth. The firm lost 177,000 net broadband customers during the quarter, most of which management ascribed to a subsidy program that ended last April. EBITDA grew nearly 4%.

We generally like Charter’s efforts to drive customer penetration by limiting price increases, improving customer service, and expanding its offerings to appeal to a variety of preferences. Competition has increased over the past couple of years as fixed-wireless broadband has gained acceptance and fiber networks continue to expand. Still, we expect Charter will be able to drive modest growth and generate consistent cash flows.

Shares of Comcast and Charter have been volatile as executives from both firms have commented about broadband customer losses at investor events. Comcast indicated it has seen underlying customer trends worsen slightly, while Charter stated that it has seen some improvement.

Charter lost 110,000 net broadband customers during the third quarter, comparable with Comcast, a cable peer of similar size that lost 87,000. Revenue increased 1.6% year over year, the strongest pace in six quarters. EBITDA expanded 4%, while lower capital spending lifted free cash flow nearly 50%.