Time Warner Cable Churn Continues to Plague Charter

Q1 basic video losses increases, tied mostly to legacy TWC systems
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Churn at legacy Time Warner Cable systems continued to dog Charter Communications in the first quarter, with continued losses at those properties making up the bulk of the 100,000 residential video customer losses for the full company in the period.  

Legacy Charter systems actually gained 19,000 residential video customers over the past 12 months, the company said. Overall, revenue rose 4.3% to $10.3 billion and cash flow increased 6.4% to $3.7 billion in the period.

High speed data and phone additions were slower in the first quarter, too. Charter added 428,000 residential high-speed data customers in Q1, down from the 520,000 additions a year ago. Residential voice additions were 37,000 in Q1, compared to 213,000 in the same period last year.

The losses seem to mimic video customer reductions in the fourth quarter, when Charter lost 51,000 residential video customers, primarily because of churn at the former TWC systems. 

"As we near the first anniversary of the close of our transformative transactions in May of last year, the execution of our integration and operating plan remains on track," Charter chairman and CEO Tom Rutledge said in a statement. "We have now launched our Spectrum pricing and packaging to nearly all of the homes we pass in our new footprint. We are already seeing the benefits of our customer-focused strategy in those markets, including greater connect volumes and the sales of higher quality products, all of which will lead to higher customer satisfaction, lower churn, and faster customer and financial growth in future quarters."