By Patience Haggin and Nicholas G. Miller
Charter Communications' stock fell more than 20% after it tempered a key, full-year revenue projection and reported subscriber declines in both its internet and video businesses in the first quarter.
Charter Finance Chief Jessica Fischer said in an earnings call Friday that average revenue per user could remain roughly flat for the rest of the year. "It'll be close either way in terms of whether we end up with net growth," she said. Fisher previously said she expected positive average-revenue-per-user growth for the full year.
For the first quarter, Charter reported average revenue per user rose about 0.1% compared with the prior quarter. It fell 1.2% year-over-year.
The cable-and-broadband company posted net income of $1.16 billion in the first quarter, compared with $1.22 billion the year prior. On a per-share basis, earnings rose to $9.17 a share from $8.42 a share the year prior. Analysts polled by FactSet expected $9.96 a share.
Revenue fell 1% to $13.6 billion. Wall Street expected $13.55 billion.
Competitor Comcast reported its first-quarter results Thursday, beating analyst expectations in its connectivity business.
During the quarter, Charter internet subscribers declined by 120,000 -- slightly more than double its internet subscriber losses in the prior-year period. Charter is facing increasing competition from fixed wireless and fiber-connection services, which are cutting into its home internet subscriber base.
Meanwhile, the pace of Charter's video subscriber losses slowed, with a drop of 60,000 in the quarter. It lost 181,000 in the prior-year period. Viewers are leaving cable TV for streaming services across the industry, though Charter has seen some success in stemming the losses by integrating streaming apps into its service bundle.
Charter is continuing to add mobile customers as it attempts to bundle services to help reverse its internet declines. During the quarter, the company's mobile subscribers increased by 368,000.
Charter also said Friday that it expects to close its pending merger with Cox Communications in the summer, pending regulatory approval from the California Public Utilities Commission.
Write to Patience Haggin at patience.haggin@wsj.com and Nicholas G. Miller at nicholas.miller@wsj.com
(END) Dow Jones Newswires
Charter reported that first-quarter average revenue per user rose about 1.1% compared with the prior quarter and that it fell 1.4% year-over-year. "Charter Stock Drops More Than 20% After Company Tempers Full-Year Expectations," at 12:06 p.m. ET, incorrectly said the company reported that average revenue per user rose about 0.01% compared with the prior quarter and that it fell 1.2% year-over-year.
(END) Dow Jones Newswires
April 24, 2026 13:03 ET (17:03 GMT)
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