Charter Communications Inc topped quarterly revenue estimates on Thursday, as the cable provider earned more customers for its internet services, triggering a drop in video subscribers.
A significant number of subscribers are dropping pay TV bundles and switching to cheaper streaming services such as Netflix and Amazon.com’s Prime video.
That has pushed companies including Charter and Comcast Corp to focus on their broadband businesses and high-speed internet upgrades as a strategy to survive in the increasingly growing media trend.
The company reported a loss of 36,000 residential video customers in the quarter, compared with net 2,000 customers it gained last year.
Charter, which belongs to the Zacks Cable Television industry, posted revenues of $11.23 billion for the quarter ended December 2018, surpassing the Zacks Consensus Estimate by 0.69%. This compares to year-ago revenues of $10.60 billion. The company has topped consensus revenue estimates three times over the last four quarters.
Net income attributable to shareholders fell to $296 million, or $1.29 per share, from $9.55 billion, or $34.56 per share, a year earlier, when the company booked a huge tax benefit. Total revenue rose 5.9 percent to $11.23 billion. Analysts on average had expected revenue of $11.14 billion, according to IBES data from Refinitiv. Charter shares have added about 1.7% since the beginning of the year versus the S&P 500’s gain of 7%.