- Charter shares fell Tuesday after Chief Financial Officer Jessica Fisher said the company may lose broadband subscribers in the fourth quarter.
- Comcast shares also fell after the comments.
- Fisher added that the effects of rising interest rates and the dispute between Disney and Charter are contributing to the company’s problems.
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Charter shares fell more than 8% on Tuesday after the company’s chief financial officer, Jessica Fisher, said the company could lose broadband subscribers in the fourth quarter.
Charter rival Comcast’s stock also fell more than 3% in midday trading.
“I can definitely see that we’re likely to end up with a negative net internet increase during the fourth quarter,” Fisher said at the UBS Global Media and Communications Conference. The company saw a decline in subscribers in October, partly due to the effects of its dispute with Disney and rising interest rates, and November was “similarly weak,” Fisher said.
Charter Added more than 60,000 broadband customers In the third quarter of this year. Comcast reported that it lost 18,000 broadband subscribers in the third quarter.
Charter has invested billions in efforts to expand broadband coverage to rural and underserved communities. The company spent $1.1 billion on line extensions in the third quarter, driven by rural expansion efforts.
But line expansions add little value when people aren’t buying homes. The housing market has suffered in recent months as buyers and sellers face rising interest rates and tight supply. Mortgage demand also reached its lowest level in nearly 30 years.
However, Fisher believes Charter will return to subscriber growth, citing a potential rebound in the housing market. Adding “value back into video,” Fisher added, referring to Disney and Charter’s deal to include Disney+ in some Spectrum plans, will also boost Charter’s competitiveness.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
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