Charter's Q1 2025 Earnings Call: Unraveling Contradictions on Fiber Overbuild, ACP Impact, and Video Trends

Fiber overbuild impact on broadband penetration, impact of ACP program on broadband growth, broadband market growth and ACP impact, impact of ACP losses on broadband results, and video trends and seamless entertainment impact are the key contradictions discussed in Charter Communications' latest 2025Q1 earnings call.



Customer Growth and Mobile Subscriptions:
- Charter added over 500,000 Spectrum Mobile lines and over 2.1 million lines over the last year, representing a line growth of over 25%.
- This growth is attributed to Charter being the fastest-growing mobile provider in the U.S., offering the fastest connectivity at the best price.

Internet Customer Performance:
- Charter lost 60,000 Internet customers in Q1, despite the improvement in customer gross additions across Internet, video, and mobile.
- The loss is partially due to the lack of the affordable connectivity program (ACP) benefits, which previously supported customer growth.

Mobile Revenue and Strategy:
- Charter's mobile revenue grew, driven by the addition of 514,000 mobile lines in Q1.
- The strategy to integrate mobile services with existing offerings, including cheaper bundled pricing, has contributed to this growth.

Capital Expenditure and Financial Outlook:
- Capital expenditures totaled $2.4 billion in Q1, down from $2.8 billion in Q4 2024, reflecting a decrease in CPE and network upgrade spending.
- Despite tariffs, Charter does not expect significant impact on capital expenditures, and the multiyear outlook remains stable.