Charter Communications reported lower first-quarter profits as cord-cutting continued to cut into its total video subscribers.
Net income slipped to $1.02 billion, $6.74 billion in the quarter, compared to $1.2 billion, or $7.05 a share a year ago. The decline was driven by higher interest expenses and other nonoperating costs, the company said.
Revenue rose 3.4%, to $13.7 billion.
The company lost 237,000 residential video customers in the first quarter, nearly double the loss it registered a year ago. It finished the quarter with 14.3 million residential video customers and said it plans to begin deploying Xumo-branded streaming devices in late 2023. Xumo is a joint venture with Comcast.
Revenue from Spectrum video subs fell 2.1% to $4.3 billion from a year ago.
Total internet customers rose by 76,000 to 30.5 million at the end of the quarter.
Internet revenue rose 4.9%, to $5.7 billion, from a year ago.
Charter added 686,000 mobile lines, giving it a total of 6 million at the end of March.
Voice revenue fell 4.6% to $373 million.
Advertising sales fell 7.2% to $355 million
“In the first quarter, we made significant progress on our three key initiatives — evolution, expansion and execution,” Charter president and CEO Chris Winfrey said. “Our customer-first strategy is focused on delivering a differentiated, converged connectivity product that delivers the fastest speeds and saves customers money, while simultaneously driving growth and creating long-term value for Charter shareholders.”
