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Analyst Steven Cahall from Wells Fargo attributed this positive outlook for Charter to its advantageous debt structure and expanding sports content. He highlighted that these factors would bolster Charter’s market share in the streaming industry over the long term. Cahall stated, “The worst of Cable is behind it, and CHTR is the clearest expression of the new normal. It has a strong converged bundle with Spectrum One, stable net adds due to its expansion in rural and a more aggressive video posture with programmers.”
Charter’s growth prospects, particularly in rural areas, also played a significant role in the rating uplift. The company’s CEO Christopher Winfrey declared during a second-quarter earnings call in late July that Charter is currently the largest and fastest-growing rural provider in the nation.
Furthermore, CFO Jessica Fischer emphasized that their rural construction initiative is disbursing at a steadier pace than in past years. This consistent spending strategy comes as the company reported an improvement in customer losses in its second quarter compared to the previous year.
Charter’s Spectrum One bundle offering, introduced in October 2022, is another factor contributing to its positive outlook. Cahall believes that if Charter can achieve strong conversion rates with Spectrum One, it could generate high-margin revenue that enhances EBITDA.
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