Charter loses 233,000 internet customers as Cox joins its results

What happened

Charter Communications reported on Friday 6 November that it lost 233,000 internet customers in the third quarter, counting Cox Communications as if the two companies had always been one. ^{[1, 3]}

The Cox deal closed on Wednesday 19 August, so the reported figures include Cox only from Thursday 20 August. Reported revenue was $14.9 billion, up 9.1 percent on a year earlier because of Cox. On the combined basis, revenue was $16.5 billion, down 1.5 percent, the company said. ^[1]

Charter reported a net loss of $2.4 billion, mainly from a $6.3 billion write-down of its cable franchises, the rights to serve customers in its areas. Its quarterly report said the charge reflects lower estimates for future customer and revenue growth. ^{[1, 2, 5]}

Why it matters

Internet is what Charter calls its core offering, and the combined loss was larger than the 171,000 of a year earlier. Legacy Charter lost 156,000 internet customers and legacy Cox 77,000, leaving 34.3 million on Wednesday 30 September. Free cash flow, the cash left after paying for the network, was $674 million, against $1.62 billion a year earlier. ^{[1, 4]}

Mobile, video and the network

Mobile lines grew by 508,000 on the combined basis, to 13.5 million, against 514,000 a year earlier. Video customers decreased by 77,000, a smaller loss than the 121,000 of a year earlier, leaving 13.8 million. ^{[1, 4]}

Capital spending was $3.2 billion on the combined basis, against $3.6 billion a year earlier, mostly from less spending to extend lines, the company said. Charter expects about $13.0 billion for 2026 on that basis, excluding the cost of folding in Cox. ^{[1, 6]}

In its own words

Charter is targeting $2 billion a year in operating cost savings within 18 months, on top of more than $1 billion it expects from combining with Cox. Chief executive Chris Winfrey said: 'We will return Charter to Internet customer growth and transform Charter into a simpler, faster, more agile organization.' ^{[1, 3, 5]}

On the call, Winfrey said Charter is giving no timeline for that return. He said internet losses in the former Cox areas had been cut in half since Spectrum's prices and packages launched there on Wednesday 16 September. ^[6]

What settles it next

Charter said it would say more about its combined 2027 plan on its fourth quarter investor call. It expects 2027 capital spending at or below $11 billion, excluding Cox transition spending, and nearly half of the Cox savings run rate in the first half of 2027. ^[6]

Who it reaches

Charter (CHTR) is direct: the results and the cost plan are its own. Verizon (VZ), AT&T (T) and T-Mobile (TMUS) are adjacent: Charter's $1,000 savings guarantee is aimed at their customers who switch two or more mobile lines to Spectrum. ^[1]