Analyst: Charter's video business growth is unlikely to overcome the fundamental pressure from broadband business.
Oppenheimer analysts Timothy Horan and Daniel McDermott stated that Charter experienced growth in video users in the fourth quarter, but this positive momentum is unlikely to offset the challenges the company faces in its broadband business. The growth in video users came at the expense of profit margins and average revenue per user, while broadband users continued to decline. These analysts said, "We believe that with increasing competition from fixed wireless, fiber, and satellite, CHTR will struggle to expand its broadband user base in the coming years." They added, "Furthermore, the company's ability to offset this competition and achieve revenue and profit margin growth by expanding average revenue per user will be limited."
Latest

