Despite experiencing substantial paper losses from stock buybacks initiated in 2020, Charter Communications remains steadfast in its investment approach. That message was sent loud and clear by Chief Financial Officer Jessica Fischer at Deutsche Bank’s annual Media & Telecom Conference on Wednesday.
Fischer affirmed the third-largest US pay TV operator’s confidence in its long-term business outlook, indicating no shift in its investment strategy is forthcoming.
Charter’s stock has witnessed a significant decline in recent years, reaching a five-year low at $270 per share, down from a peak of $825 in Q3 2021. This downturn has resulted in approximately $22.5 billion in paper losses from its stock buybacks.
Despite these losses, there’s a silver lining for Charter, as CEO Christopher Winfrey recently invested $1.5 million in Charter shares, his first purchase in two years, signaling potential optimism about the company’s future.
During her Deutsche Bank address, Fischer also highlighted the growth potential of Spectrum Mobile. With only 8 million wireless lines tapped out of 130 million in Charter’s coverage area, she envisions mobile services contributing substantially to the company’s EBITDA growth over the next few years.
On the fixed wireless access side, she anticipates a significant return of customers to Charter as FWA operators like T-Mobile and Verizon Communications reassess the pricing and sustainability of their services.
