Charter Shares Drop 9% After Finance Chief Warns on Broadband Softness

By Will Feuer

Shares of Charter Communications slipped after Chief Financial Officer Jessica Fischer warned the company's base of internet subscribers could decline in the current quarter.

The stock fell about 9% to $363.48 on Tuesday. Shares are still up more than 7% this year.

The warning also weighed on shares of rival Comcast, which traded nearly 4% lower.

Fischer, speaking at the UBS Global Media and Communications Conference, said that November was slow for new internet customer sign-ups. She warned Charter could end the quarter with negative internet net adds.

"But I want to be really clear that we think that that's sort of its short-term challenges," she said, adding the performance would be in line with the rest of the industry.

Cable companies have been struggling to gain new broadband customers in part because of higher interest rates, which are keeping more consumers locked into their current homes. Internet providers often try to win over new customers when they move. Rising competition from new wireless home internet services, provided by Verizon, T-Mobile and others, is also denting growth.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

December 05, 2023 13:25 ET (18:25 GMT)

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