Charter Expands Net Losses, Gains Video Subscribers

Charter Communications gained some surprising growth in its core video subscribers in the fourth quarter -- but expanded its financial losses due to is yet-to-be-completed deal of Time Warner Cable.

Traditional video customers grew by 29,000 -- versus a 3,000 loss a year ago to a total of 4.3 million at the end of 2015. Internet added 115,000, up 11%, to 5.2 million; and voice/phone adding 47,000, down 6% from a year ago, totaling 2.6 million for 2015.

Many cable/video operators have seen declines among video subscribers.

Charter’s average residential revenue per customer grew 2.3% to $111.19 in the fourth quarter. Total video revenues were up 2.9% to $1.2 billion; Internet, 16% higher to $781 million; and voice/phone dipping 2.7% to $135 million.

Advertising revenue sank nearly 19% to $87 million due to lower political advertising revenue versus the same period a year ago.



Overall revenue climbed 6.4% to $2.5 billion.

But Charter expanded its net losses to $122 million -- more than double that of year ago when it was $48 million. Much of this is due to big interest expense -- $231 million -- related to financing its pending cable/Internet operator acquisitions of Time Warner Cable and Bright House.

Charter is trying to win federal regulatory approval for its $55 billion cash-and-stock deal for Time Warner Cable and Bright House.

Midday trading of Charter’s stock was down around 1% to $175.17.

Next story loading loading..