By Angela Palumbo
Charter Communications stock was tumbling Friday after the parent company of Spectrum Networks reported a surprise loss in internet subscribers.
Charter shares were sinking 12% to $336.86. The stock was on pace for its largest percentage decrease since December 2022 and lowest close since June 2023, according to Dow Jones Market Data. The stock was also the second-worst performer in the S&P 500 Friday. The index was up 0.3%.
The cable company said Friday that total residential and small- and medium-business internet customers declined by 61,000 in the fourth quarter ended Dec. 31. Analysts surveyed by FactSet were expecting internet customers to increase by 6,000.
“Internet growth in our existing footprint has been challenging driven by admittedly more persistent competition from fixed wireless,” Chief Executive Christopher Winfrey said on the earnings call.
Residential video customers decreased by 248,000 in the quarter, compared with Wall Street estimates for a loss of 200,000, and a decline of 145,000 in the same period a year earlier. The latest quarterly decline partly was driven by video disconnects related to the temporary loss of Walt Disney programming in early September, the company said.
Disney and Charter had an 11-day long channel blackout last year after the entertainment companies couldn’t agree on a distribution deal.
For the fourth quarter, Charter reported earnings of $7.07 a share on revenue of $13.71 billion. Analysts surveyed by FactSet were expecting earnings of $8.76 a share on revenue of $13.7 billion.
Disney stock was down 0.9% Friday, while Comcast was dropping 3.6%.
Write to Angela Palumbo at angela.palumbo@dowjones.com