The Affordable Connectivity Program's demise weighs on Charter and Comcast

When it comes to cable earnings, the outlook hasn’t been exactly optimistic. Cable broadband “may decline for the foreseeable future,” Wolfe Research recently predicted, as valuation multiples for Charter and Comcast “near all-time lows.” Charter and Comcast lost 149,000 and 120,000 broadband subscribers, respectively, in the second quarter. They fared better than analysts expected, however rough patches may still lie ahead due to the end of the Affordable Connectivity Program (ACP). Charter estimates the ACP’s expiration drove “over 100,000” of the 149,000 customers it lost, said CFO Jessica Fischer. New Street Research had predicted Charter would lose around 209,000 internet subscribers in the quarter. Comcast chalked up its subscriber losses to an “intensely competitive” broadband environment, said CFO Jason Armstrong. Residential broadband losses of 110,000 were “better than expected,” according to New Street.