Charter Shares Fall About 7% as Internet Customer Losses Widen

Charter Communications shares fell about 7% in premarket trading Friday, Nov. 6, after its third-quarter customer tally showed a wider internet customer loss than a year earlier.

Charter recorded a pro forma loss of 233,000 internet customers, compared with 171,000 in the year-earlier quarter. That was 62,000 more customers lost on this comparison. A new operating model is intended to restore customer growth and improve retention.

The company is targeting $2 billion in annualized operating expense savings over 18 months. It also expects more than $1 billion in synergies from its Cox transaction.

Revenue totaled $14.92 billion, while adjusted EBITDA reached $5.94 billion; both figures exceeded consensus estimates. On a pro forma basis, revenue declined 1.5% and adjusted EBITDA fell 4%. Free cash flow decreased by $947 million year over year.