Broadband subscriber growth slows to pre-pandemic levels

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, said that the firm has lowered its broadband subscriber estimates for the second time in 2022 for both Charter and Comcast. "We have limited conviction in a quick recovery, given limited visibility all around," he said regarding Charter. "We are hoping for a turnaround later in the quarter but have low conviction," he added about Comcast. Comcast's stock slid 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, the Affordable Connectivity Program, as a major contributor to its customer loss.