STAMFORD — Charter Communications, the provider of Spectrum internet, cable and phone services, saw its customer numbers decline in several areas early this year, while one platform continued to grow.
The Stamford-based company ended the first quarter of this year with about 31.4 million customer relationships — marking a 2% year-over-year decrease, according to the earnings report released Friday. As part of that trend, Charter's customer totals dropped in its internet, cable and home-phone businesses. But the Spectrum Mobile service that is available to all internet customers keeps expanding. It added 514,000 lines in the first quarter and more than 2.1 million lines in the past year, for a total of about 10.4 million.
“We performed well in the first quarter,” Charter CEO and President Chris Winfrey said in an earnings call on Friday morning. “We continued to be the fastest-growing mobile provider in the U.S., with the fastest connectivity, at the best price.”
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Charter’s revenues first-quarter totaled about $13.7 billion, up 0.4% year over year. The company’s first-quarter profit of about $1.2 billion compared with a bottom line of around $1.1 billion in the first quarter of 2024.
Winfrey and Chief Financial Officer Jessica Fischer expressed optimism about the company’s ability to withstand the wave of tariffs imposed by President Donald Trump. Charter operates entirely in the U.S., across a 41-state footprint, with about 115,000 customers in Connecticut.
“We don’t currently expect tariffs to have a significant impact on our capital expenditures for this year and over the next several years,” Fischer said. “We have attractive agreements with our equipment vendors, and we continue to work with them to minimize the impact of tariffs, while at the same time supporting the health of the cable-equipment ecosystem.”
Investors responded favorably to the first-quarter results. Charter’s shares were trading at about $370 at noon Friday, up 10% from their closing total on Thursday and up about 6% year to date.
Based on its 2023 revenues, Charter ranked No. 76 on last year’s Fortune 500 list of the largest U.S. corporations.
The company has about 1,800 employees based at its headquarters at 400 Washington Blvd., in downtown Stamford.
Growing focus on streaming entertainment
While the abundance of product options and service providers in the telecommunications industry has made customer growth challenging for Charter in recent years, executives express confidence about the company’s long-term prospects.
Among Charter’s most-important initiatives of the past couple of years is Xumo Stream Box, which combines live TV and streaming apps. It was launched in October 2023 through a joint venture with another telecommunications giant, Comcast.
As a device that plugs into most smart TVs, Xumo comes preloaded with more than 250 apps. The number of apps that customers can use with Xumo depends on their subscriptions. A Spectrum TV Select Plus subscriber, for instance, would get access to the Spectrum TV app, as well as the ad-supported AMC+, Max, Disney+, ESPN+, Paramount+, Peacock Premium, Vix and Tennis Channel+ apps. But a Select Plus customer would need to get separate subscriptions for other apps such as Amazon Prime Video, Apple TV+ and Netflix that are not part of that plan, which has a standard monthly rate of $125.
“As the market was shifting toward streaming, one of the things we had to do was make a very conscious strategic decision as to how are we going to transform how we sell our video products,” Danny Bowman, Charter’s executive vice president of product, said in an interview earlier this month at Charter’s headquarters in Stamford. “This is why we made a very specific investment with Comcast to create Xumo.”
By March 2024, the company had deployed more than 1 million Xumo devices. More recent data on Xumo usage was not immediately available.
“We have a lot of existing customers who are adding a Xumo box and keeping their set-top box,” Bowman said. “We have some customers who are handing in their set-top box and moving 100% to a Xumo experience … A lot of our new customers are taking that as their primary video experience.”
Among other promising signs for the cable business, Spectrum edged out Comcast’s Xfinity for the top score for overall customer satisfaction in J.D. Power’s 2024 study of U.S. television service providers.
“They’re doing a great job of producing products to make their services even more attractive and higher quality,” Carl Lepper, senior director of consumer-analytics firm J.D. Power’s TMT Intelligence group, which focuses on technology, media and telecommunications, said this week. “And their call centers are doing a great job.”
But the introduction of Xumo and the high marks for customer service have not yet reversed the ongoing decline in Charter’s cable customer base. Its approximately 12.7 million cable customers in the first quarter of this year was down 7% from a year ago, 15% from the first quarter of 2023 and 19% from the first quarter of 2022.
“Any new product that you bring to market and start to package, it takes a while to wear in,” Bowman said. “It’s just not going to happen overnight.”
April 25, 2025