Broadband Subscriber Growth Slows To Pre-Pandemic Levels

Cable companies are being downgraded by Wall Street analysts in response to weak broadband growth coming out of the pandemic. From a report: Cable companies have managed to stay afloat amid the cord-cutting crisis thanks to their booming broadband businesses. But some analysts see that safety net beginning to fade. Jonathan Chaplin, managing partner at New Street Research, wrote in two notes to clients that the firm has lowered its broadband subscriber estimates for the second time this year for both Charter and Comcast. "We have limited conviction in a quick recovery, given limited visibility all around," he wrote regarding Charter. "We are hoping for a turnaround later in the quarter but have low conviction," he wrote regarding Comcast. Comcast's stock slid last week after it reported flat broadband subscriber additions for the second quarter of 2022. The telecom giant was still able to increase broadband revenues, but its growth has been slowed by increased competition and more users relying on mobile hotspots and fixed wireless plans. Charter lost broadband subscribers for the first time last quarter. Executives cited customers rolling off the government's broadband subsidy program as a major contributor to its customer loss. "Excluding that headwind, we organically grew 38,000 internet customers in the quarter," Charter chief financial officer Jessica Fischer told investors.

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