Charter's Q2 2025 Earnings Call: Dissecting Contradictions on Video Strategy, Churn, and T-Mobile Growth Potential

Video product strategy and churn reduction, impact of ACP changes on churn, tax savings impact, and impact of T-Mobile deal on future growth are the key contradictions discussed in Charter Communications' latest 2025Q2 earnings call.



Internet Subscriber Trends:
- Charter lost 117,000 Internet customers in Q2 2025, improving from 149,000 losses in Q2 2024.
- This improvement was driven by better connects and lower churn, attributed to new pricing and packaging strategies, as well as the inclusion of programmer apps in packages.

Mobile Growth and Market Leadership:
- Charter added 500,000 Spectrum Mobile lines in Q2 2025 and 2.1 million lines over the last 12 months.
- The growth was driven by offering seamless connectivity at competitive prices, with Unlimited Plus lines attracting more customers and higher ARPU.

Video Customer Losses and Strategy:
- Video customer losses improved fivefold year-over-year to 80,000 in Q2 2025.
- This improvement was due to better connects and lower churn, with new pricing and packaging strategies driving more mobile lines per customer connect and better upgrade rates.

Tax Savings and Financial Outlook:
- Charter expects that its recent tax legislation will save several billion dollars in cash taxes over the next five years.
- This will finance capital expenditures and investments, supporting free cash flow growth and shareholder returns.

Network Evolution and Capital Expenditure:
- Charter plans to reduce capital intensity over time, with 2025 expected to be the peak year.
- The decline in capital intensity is due to investments in network evolution, including cable upgrades that add capacity and reduce costs per passing.