Charter expects positive subscriber growth despite hefty Affordable Connectivity Program losses

Charter Communications CFO Jessica Fischer revealed the operator is expecting as many as 70,000 broadband customers to churn off its network in second quarter 2022 as they roll off a government subsidy program, but stressed it still believes it will achieve overall positive broadband subscriber growth for the period. Fischer explained Charter has been an active participant in the Federal Communications Commission’s Emergency Broadband Benefit (EBB) program and its successor, the Affordable Connectivity Program (ACP). While it has acquired some customers through the program, she said its main focus has been signing up members of its base who quality for the benefit. Thus, Charter now has “a much larger population of EBB and ACP subscribers than probably all other broadband providers.” While this has helped its subscriber base weather economic pressures, it also left Charter exposed to churn when the EBB ended and customers were transitioned to the ACP earlier in 2022. A total of between 60,000 to 70,000 subscribers are expected to be dropped as part of this move. Excluding the impact of these losses, Fischer said Charter expects to deliver positive total net internet adds in the second quarter. She added, “I think that we’ll have positive total net internet additions even when including the headwinds that I described.”