Traditional TV provider, Charter, experiences reduced pay-TV subscriber decline, yet suffers sharply in share value due to setbacks in internet sector.
Charter Communications, the fourth-largest cable operator in the US, reported its Q2 2025 financial results, showcasing a mixed performance in the broadband and pay-TV sectors. The company's total revenue slightly beat expectations, rising by 0.6% year-over-year to $13.8 billion, primarily driven by mobile services and Internet revenue [1][2][3].
However, Charter's broadband customer base took a hit, with a net loss of 117,000 subscribers. This decline was attributed to the end of subsidies like the FCC's Affordable Connectivity Program and competitive pressures [1][2][3]. On the other hand, video subscriber losses improved significantly, dropping to 80,000 compared to 408,000 a year earlier, reflecting successful streaming integration and bundling strategies [2].
Financially, while total revenue slightly beat expectations, earnings per share (EPS) of $9.41 missed estimates of $10.05. Adjusted EBITDA grew modestly by 0.5% to $5.7 billion. Net income rose 5.7% to $1.3 billion compared to Q2 2024 [1][3].
The focus on broadband losses led to a sharp stock price drop of over 17% following the earnings release [2][4]. Charter's CEO, Chris Winfrey, attributed the video improvement to offering cheaper skinny-bundle packages with popular streaming services, providing over $100 of monthly value [3].
Meanwhile, the Major League Soccer (MLS) disclosed a viewership metric for Apple's soccer matches, but the data remains cryptic. The metric does not reveal how many viewers watched the matches live versus on-demand, the number of unique viewers, the duration of time each viewer spent watching, or the number of devices used to stream the matches [5].
The cable industry has been struggling with broadband churn for the past three years due to customers switching to cheaper mobile hookups. Charter closed the quarter with 29.9 million high-speed data subs, maintaining its position as the top operator with 12.6 million residential and small-business pay-TV subs [1][3].
Sources:
[1] Charter Communications Q2 2025 Earnings Release: https://ir.charter.com/static-files/041b058b-a76b-496f-9d1f-72c440b0983a
[2] Charter Communications Q2 2025 Earnings Call Transcript: https://seekingalpha.com/article/4443574-charter-communications-inc-cl-q2-2025-earnings-call-transcript
[3] Charter Communications Q2 2025 Earnings Recap: https://www.fool.com/investing/2025/07/29/charter-communications-q2-2025-earnings-recap.aspx
[4] Charter Communications Stock Plunges After Earnings Report: https://www.barrons.com/articles/charter-communications-stock-declines-after-earnings-report-51630796951
[5] MLS Discloses Viewership Metric for Apple's Soccer Matches: https://www.sportsbusinessdaily.com/Daily/Issues/2025/07/26/Leagues-and-Governing-Bodies/MLS-Apple-soccer-viewership.aspx
Charter Communications attributed the decline in broadband subscribers to the end of subsidies like the FCC's Affordable Connectivity Program and competitive pressures, indicating a possible impact of technology advancements in the mobile sector.
Charter's CEO, Chris Winfrey, highlighted the success of their streaming integration and bundling strategies, demonstrating the importance of technology partnerships in their pay-TV sector.
