Charter Continues to Lose Internet, Video Customers; Plans New Savings Program

By Kelly Cloonan

Charter Communications continued to lose internet and video subscribers in the third quarter, dragging on its overall results.

The cable-and-broadband company also said it is rejiggering its operating model for its core internet service to draw new customers and better keep its existing customers, and announced a new cost-cutting plan aimed at saving about $2 billion in annualized run-rate operating expenses over the next year and a half.

The savings program will focus on eliminating what the company called nonessential activities, as well as simplifying its organizational structures and boosting efficiency through vendor partnerships.

"We are fundamentally rethinking how we operate and compete," Chief Executive Chris Winfrey said.

Winfrey said the company is aiming to return to internet customer growth and become a simpler, faster and more agile organization.

"We have the assets and competitive advantages to succeed and are moving with urgency to deliver more value for our customers and stronger results for our investors," Winfrey said.

The results and savings plan come after Charter closed its $21.9 billion acquisition of Cox Communications in August, a deal that expands its base of internet and video subscribers.

The stock fell 7% to $117.04 in premarket trading on Friday.

Charter swung to a third-quarter loss of $2.4 billion, or $20.50 a share, from a profit of $1.14 billion, or $8.34 a share, a year earlier. Analysts polled by FactSet expected earnings of $8.94 a share.

Charter said the loss was driven by an impairment of franchises of $6.3 billion, partly offset by other factors including a gain on extinguishment of debt.

Revenue increased 9.1% to $14.92 billion, compared with analyst estimates of $13.5 billion. The increase was driven by the addition of Cox. On a pro-forma basis, which factors in Cox's results from both recent quarter and year-earlier period, revenue declined 1.5% to $16.5 billion.

During the quarter, internet subscribers fell by 233,000 on a pro-forma basis, including a decline of 156,000 customers at Charter and 77,000 at Cox. As of the end of the quarter, Charter had a total of 34.3 million internet customers.

Video customers dropped by 77,000 in the third quarter on a pro-forma basis, to a total of 13.8 million.

Rising competition from fixed-wireless and fiber-connection services have been denting Charter's home-internet subscriber base, while the rise of streaming services has hurt its cable business.

Charter's Spectrum Mobile business, meanwhile, continued to grow, adding 508,000 lines in the quarter on a pro-forma basis, with 440,000 for legacy Charter. The company served 13.5 million mobile lines as of the end of the quarter.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

November 06, 2026 08:25 ET (13:25 GMT)