Charter Communications Reports Reduced Losses for Q2
August 8, 2012
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Charter Communications, a cable, broadband, and phone service provider with service areas across the United States, reported reduced loss in the second quarter of 2012, with the loss narrowed to $83 million this year in comparison to $107 in the same quarter last year. According to the Wall St. Cheat Sheet, revenue for Charter Communications (traded on NASDAQ as CHTR) rose 5.2% to $1.88 billion from the year earlier quarter. The cable provider fell short of the mean analyst loss estimate and beat the average revenue estimate.
Cable companies are currently feeling the heat as many customers are “cutting the cord” and turning to web streaming services like Netflix and Hulu to watch cable TV programming. As a result, Charter Communications is focusing more on its broadband internet service in current marketing and promotion. The current service, which offers 30Mbps internet for $29.99 a month to start, is part of a major push from Charter to change its offerings, providing fewer but clearer options for bundles and standalone services. In Q2, Charter lost TV customers but actually added internet and phone customers, somewhat reducing the loss and leading the company to fall below the losses most analysts expected.
Stock market analysts are increasingly pessimistic about Charter Communications moving through the third quarter of 2012, with the average estimated loss at 42 cents per share. Tom Rutledge, President and CEO of Charter, is less so, citing the better-than-expected performance in Q2 as well as the launch in July of new pricing and packaging and a number of operational changes that have been made since Rutledge took over at the top of the company’s organizational chart.
Other cable and satellite providers, such as DIRECTV, have reported total subscriptions going down in Q2. A focus on more broadband and TV Everywhere options should be the focus of these companies moving forward.