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Business Wire
9 hours ago
- Business
- Business Wire
GCI Liberty Reports Second Quarter 2025 Financial Results
ENGLEWOOD, Colo.--(BUSINESS WIRE)--GCI Liberty, Inc. ('GCI Liberty') (Nasdaq: GLIBA, GLIBK) today reported second quarter 2025 results. Headlines include (1): Spin-off of GCI Liberty from Liberty Broadband completed July 14 th GCI (2) grew revenue 6% to $261 million, generated operating income of $51 million and increased Adjusted OIBDA (3) 26% to $108 million GCI Consumer revenue decreased 2% GCI Business revenue increased 14% GCI generated net cash provided by operating activities of $342 million and free cash flow of $153 million over the trailing twelve months ended June 30, 2025 (3) Consumer cable modem subscribers declined 3% to 154,500 and consumer wireless lines in service grew 1% to 207,000 On June 27 th, the Supreme Court ruled in favor of upholding the constitutionality of the Universal Service Fund ('USF') 'GCI delivered strong results during the quarter, reflecting our operating progress and breadth of connectivity services,' said GCI Liberty CEO, Ron Duncan. 'The strength of our business translated into solid revenue and Adjusted OIBDA growth, which also reflects benefits from last year's healthcare and education upgrade cycle and efficiencies in our cost structure that we are actively managing. Importantly, we were very pleased with the Supreme Court's ruling in late June upholding the Universal Service Fund. This provides clarity for GCI to continue the critical work of bridging the digital divide and ensuring high quality connectivity across rural communities in Alaska.' Corporate Update On July 14, 2025, Liberty Broadband Corporation ('Liberty Broadband') completed the spin-off of the GCI business into a new entity called GCI Liberty. Holders of Liberty Broadband common stock received 0.2 of a share of the relevant series of GCI Liberty common stock per share of the corresponding series of Liberty Broadband common stock held. GCI Liberty consists of its wholly-owned subsidiaries, GCI, LLC, GCI Holdings, LLC ('GCI Holdings' or 'GCI') and their subsidiaries. GCI Holdings provides data, mobile, voice and managed services to consumer, business, government and carrier customers throughout Alaska. Additional information regarding the spin-off can be found in the prospectus filed by GCI Liberty with the Securities and Exchange Commission on July 2, 2025. Discussion of Results The following table provides the financial results and operating metrics of GCI Liberty for the second quarters of 2024 and 2025. _______________ (a) See reconciling schedule 1. Expand GCI revenue increased 6% in the second quarter of 2025. Business revenue increased 14% due to the continued strong upgrade cycle in schools and healthcare corporations in remote Alaska which began in the third quarter of 2024. Consumer revenue decreased 2%, driven primarily by data subscriber losses related to the termination of the Affordable Connectivity Program ('ACP') in 2024 as well as declines in the video business, partially offset by growth in wireless. GCI remains on track to fully exit the video business by the end of 2025. Operating income increased $21 million and Adjusted OIBDA increased $22 million in the second quarter in line with higher revenue and lower operating expenses. Operating expenses decreased primarily due to lower distribution costs for healthcare, education and consumer customers, some of which related to temporary cost savings from a fiber break on a third-party network in which GCI uses capacity. Selling, general and administrative expense decreased 4% primarily due to a decrease in external labor costs. Year to date, GCI has spent $100 million, net, on capital expenditures. Capital expenditure spending was related primarily to improvements to the wireless and data networks in rural Alaska. GCI's net capital expenditures for the full year 2025 are expected to be approximately $250 million related to additional investments in middle and last mile connectivity, with continued network expansion in GCI's most important markets in rural Alaska including the Bethel and AU-Aleutians fiber projects. A significant portion of the increased capital expenditures in 2025 are related to fulfilling the build-out requirements of the Federal Communications Commission's Alaska Plan, which is expected to be completed by the end of 2026. On a trailing twelve-month basis through the second quarter of 2025, net cash provided by operating activities totaled $342 million and free cash flow over the same period was $153 million. _______________ (a) A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Small-to-Medium Business customers are included. (b) A wireless line in service is defined as a wireless device with a monthly fee for services. Small-to-Medium Business customers are included. Expand GCI Consumer revenue totaled $119 million in the second quarter of 2025, a 2% decrease compared to the prior period. The decrease was driven primarily by a decline in data and video revenue, offset by strength in wireless. Data revenue totaled $60 million, a 5% decrease, driven by the loss of data subscribers including the impact of the discontinuation of the ACP program in 2024. Consumer cable modem subscribers declined 3% year-over-year bringing total consumer cable modem customers to 154,500. During the second quarter of 2025, GCI lost 1,300 consumer cable modem subscribers. Subscriber growth in rural areas has been adversely impacted by an outage from a fiber break on a third-party network in which GCI uses capacity. Wireless revenue totaled $51 million, a 6% increase, driven by growth in wireless subscribers and an increase in federal wireless subsidies. Consumer wireless lines grew 1% year-over-year, bringing total consumer wireless lines to 207,000. During the second quarter of 2025, GCI added 4,700 consumer wireless lines. GCI Consumer gross margin was 70.6% in the second quarter of 2025, a 40 bps increase from the same quarter last year. GCI Consumer direct costs decreased 3% in the second quarter of 2025, driven by temporary cost savings from a fiber break on a third-party network in which GCI uses capacity. GCI Business GCI Business revenue totaled $142 million in the second quarter of 2025, a 14% increase compared to the prior period. The increase was driven primarily by strength in data, with an 18% increase in total revenue of $125 million, driven by the continued strong upgrade cycle in schools and healthcare corporations in remote Alaska which began in the third quarter of 2024. Wireless revenue totaled $10 million, a decrease of $2 million or 17%. GCI Business gross margin was 81.7% in the second quarter of 2025, a 730 bps increase from the same quarter last year. GCI Business direct costs decreased 19% in the second quarter of 2025, driven primarily by temporary cost savings from a fiber break on a third-party network in which GCI uses capacity. FOOTNOTES 1) Unless otherwise noted, highlights compare financial information for the three months ended June 30, 2025 to the same period in 2024. GCI Liberty will discuss these highlights and other matters on GCI Liberty's earnings conference call that will begin at 11:15 a.m. (E.T.) on August 7, 2025. For information regarding how to access the call, please see 'Important Notice' later in this document. 2) GCI Liberty's principal operating asset is GCI Holdings, which provides data, mobile, voice and managed services to consumer, business, government and carrier customers throughout Alaska. 3) For a definition of Adjusted OIBDA, Adjusted OIBDA margin and free cash flow and applicable non-GAAP reconciliations, see the accompanying schedule 1. Expand NOTES Cash and Debt The following presentation is provided to separately identify cash, cash equivalents, restricted cash and debt of GCI Liberty as of March 31, 2025 and June 30, 2025. _______________ (a) Principal amount of Senior Notes. (b) Includes the Wells Fargo Note Payable and current and long-term obligations under tower obligations and finance leases. (c) As defined in GCI's credit agreement. Expand GCI Liberty cash, cash equivalents and restricted cash decreased $32 million in the second quarter of 2025 primarily due to capital expenditures net of grant proceeds and net repayments of debt, partially offset by cash from operations. GCI Liberty debt decreased $86 million in the second quarter due to the paydown of debt under GCI's senior credit facility. In March 2025, GCI refinanced its existing $550 million revolving credit facility due October 2026 with a new $450 million revolving credit facility maturing in March 2030 and its existing $250 million Term Loan A due October 2027 with a new $300 million Term Loan A maturing in March 2031. As of June 30, 2025, GCI's credit facility has undrawn capacity of $377 million (net of letters of credit), and GCI's leverage as defined in its credit agreement is 2.3x. Prior to the spin-off, $10 million of non-voting preferred stock of GCI Liberty was issued to Liberty Broadband and then sold by Liberty Broadband to third party buyers. The non-voting preferred stock is issued by GCI Liberty, has a 12% dividend rate and $1,000 per share liquidation price plus accrued and unpaid dividends. The mandatory redemption date is July 14, 2032. Important Notice: GCI Liberty (Nasdaq: GLIBA, GLIBK) will discuss GCI Liberty's earnings release on a conference call which will begin at 11:15 a.m. (E.T.) on August 7, 2025. The call can be accessed by dialing (877) 407-3944 or (412) 902-0038, passcode 13749438, at least 10 minutes prior to the start time. The call will also be broadcast live across the Internet and archived on our website. To access the webcast, go to Links to this press release and replays of the call will also be available on GCI Liberty's website. This press release includes certain forward-looking statements under the Private Securities Litigation Reform Act of 1995, including statements about business strategies, market potential, future financial prospects and capital expenditures. These forward-looking statements involve many risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including, without limitation, competitive issues, customer demand, economic conditions (including inflationary pressures), regulatory and legislative matters affecting our businesses, our ability to obtain or maintain roaming services and necessary communications equipment and our ability to obtain additional financing on terms acceptable to GCI Liberty. These forward-looking statements speak only as of the date of this press release, and GCI Liberty expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein to reflect any change in GCI Liberty's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Please refer to the publicly filed documents of GCI Liberty, including the prospectus filed on July 2, 2025 with the Securities and Exchange Commission, as part of GCI Liberty's Registration Statement on Form S-1 (File No. 333-286272), and the most recent Form 10-Q, for additional information about GCI Liberty and about the risks and uncertainties related to GCI Liberty which may affect the statements made in this press release. NON-GAAP FINANCIAL MEASURES SCHEDULE 1 To provide investors with additional information regarding our financial results, this press release includes a presentation of Adjusted OIBDA and trailing twelve months of free cash flow, which are non-GAAP financial measures, for GCI Liberty together with reconciliations to operating income and net cash provided by operating activities, respectively, as determined under GAAP, as well as Adjusted OIBDA margin. GCI Liberty defines Adjusted OIBDA as operating income (loss) plus depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring and impairment charges. GCI Liberty defines Adjusted OIBDA margin as Adjusted OIBDA divided by revenue. GCI Liberty defines free cash flow as net cash provided by operating activities less capital expenditures net of grant proceeds received for capital expenditures. GCI Liberty believes Adjusted OIBDA and free cash flow are important indicators of the operational strength and performance of its business by identifying those items that are not directly a reflection of business performance or indicative of ongoing business trends. In addition, these measures allow management to assess GCI Liberty's performance, its ability to service its debt, fund operations and make additional investments with internally generated funds, perform analytical comparisons, and identify strategies to improve performance. GCI Liberty believes presenting free cash flow on a trailing twelve month basis more accurately demonstrates the company's liquidity profile by minimizing seasonal fluctuations, particularly around timing of USF cash receipts. Because Adjusted OIBDA and free cash flow are used as measures of operating performance and liquidity, respectively, GCI Liberty views operating income and net cash provided by operating activities, respectively, as the most directly comparable GAAP measures. Adjusted OIBDA and free cash flow are not meant to replace or supersede operating income, net cash provided by operating activities or any other GAAP measure, but rather to supplement such GAAP measures in order to present investors with the same information that GCI Liberty's management considers in assessing the results of operations and performance of its assets. Please see the table below for applicable reconciliations. The following table provides a reconciliation of GCI Liberty's operating income to Adjusted OIBDA for the three months ended June 30, 2024 and June 30, 2025 and net cash provided by operating activities to free cash flow for the twelve months ended June 30, 2025. Twelve months ended (amounts in millions) 6/30/2025 Net cash provided by (used in) operating activities $ 342 Capital expenditures (243 ) Grant proceeds 54 Free cash flow $ 153 Expand GCI LIBERTY, INC. CONDENSED COMBINED BALANCE SHEET INFORMATION (unaudited) June 30, December 31, 2025 2024 amounts in millions Assets Current assets: Cash and cash equivalents $ 104 74 Trade and other receivables, net of allowance for credit losses of $4 and $4, respectively 124 184 Prepaid and other current assets 48 61 Total current assets 276 319 Property and equipment, net 1,184 1,150 Intangible assets not subject to amortization Goodwill 746 746 Cable certificates 550 550 Other 41 41 1,337 1,337 Intangible assets subject to amortization, net 392 411 Other assets, net 165 165 Total assets 3,354 3,382 Liabilities and Equity Current liabilities: Accounts payable and accrued liabilities 98 110 Deferred revenue 24 21 Current portion of debt 4 3 Other current liabilities 68 58 Total current liabilities 194 192 Long-term debt, net 983 1,066 Obligations under tower obligations and finance leases 70 72 Long-term deferred revenue 130 113 Deferred income tax liabilities 353 359 Other liabilities 129 151 Total liabilities 1,859 1,953 Redeemable noncontrolling interest in equity of subsidiary 18 15 Equity Member's investment 1,778 1,777 Retained earnings (deficit) (301 ) (363 ) Total equity 1,477 1,414 Commitments and contingencies Total liabilities and equity $ 3,354 3,382 Expand GCI LIBERTY, INC. CONDENSED COMBINED STATEMENT OF OPERATIONS INFORMATION (unaudited) Three months ended June 30, 2025 2024 amounts in millions, except per share amounts Revenue $ 261 246 Operating costs and expenses: Operating expense (exclusive of depreciation and amortization) 128 134 Selling, general and administrative expense (including stock-based compensation) 30 30 Depreciation and amortization 52 52 210 216 Operating income (loss) 51 30 Other income (expense): Interest expense (including amortization of deferred loan fees) (12 ) (13 ) Other, net 2 2 (10 ) (11 ) Earnings (loss) before income taxes 41 19 Income tax benefit (expense) (14 ) (6 ) Net earnings (loss) $ 27 13 Pro forma net earnings (loss) attributable to Series A, Series B and Series C GCI Group shareholders per common share $ 0.94 NA Expand GCI LIBERTY, INC. CONDENSED COMBINED STATEMENT OF CASH FLOWS INFORMATION (unaudited) Six months ended June 30, 2025 2024 amounts in millions Cash flows from operating activities: Net earnings (loss) $ 62 33 Adjustments to reconcile net earnings (loss) to net cash from operating activities: Depreciation and amortization 105 102 Stock-based compensation 7 7 Deferred income tax expense (benefit) (6 ) 11 Other, net (2 ) (2 ) Change in operating assets and liabilities: Current and other assets 92 39 Payables and other liabilities (32 ) (28 ) Net cash provided by (used in) operating activities 226 162 Cash flows from investing activities: Capital expenditures (119 ) (123 ) Grant proceeds received for capital expenditures 19 19 Other investing activities, net 6 — Net cash provided by (used in) investing activities (94 ) (104 ) Cash flows from financing activities: Borrowings of debt 691 130 Repayments of debt, tower obligations and finance leases (775 ) (82 ) Contributions from (distributions to) member — (150 ) Other financing activities, net (6 ) — Net cash provided by (used in) financing activities (90 ) (102 ) Net increase (decrease) in cash, cash equivalents and restricted cash 42 (44 ) Cash, cash equivalents and restricted cash, beginning of period 75 97 Cash, cash equivalents and restricted cash, end of period $ 117 53 Expand
Yahoo
5 days ago
- Business
- Yahoo
Spectrum suffers major loss as customers pull the plug on service
Spectrum suffers major loss as customers pull the plug on service originally appeared on TheStreet. Spectrum, which is operated by Charter Communications () , is struggling to shake a growing consumer trend that is harming its business, and it is shifting gears to fix the problem. In Charter's second-quarter earnings report for 2025, it revealed that Spectrum lost about 117,000 internet customers during the quarter, which is almost 6% higher than the number of internet customers it lost during the same time period last year. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 The steeper customer loss follows Spectrum's decision to raise its monthly internet prices by $3 to $4, depending on the plan, in July last year, frustrating customers. It also warned customers last month that monthly rates for a few of its internet plans would increase by $2, a change that went into effect a few weeks recent internet price increases mirror a growing trend in the telecom industry. According to a recent survey from CNET, 63% of U.S. adults saw the monthly price of their home internet service increase last year. On average, they paid $195 more for internet service in 2024 than in 2023. Charter CEO addresses the elephant in the room: end of key discount During an earnings call on July 25, Charter CEO Chris Winfrey emphasized the company is operating in a 'competitive' environment. He also said that the number of Spectrum customers who have had their service cut off due to non-payment has increased year-over-year, partially due to the end of the Affordable Connectivity Program (ACP). This was a government program that provided eligible households a discount of up to $30 a month for internet service. It was discontinued in February last year. 'The reason that non-pay has stepped up year-over-year is because twofold,' said Winfrey. 'One is you have former ACP customers who are economically challenged and have a higher non-pay rate systemically, without the benefit of the subsidy from a year-over-year standpoint. But in addition to that, from a year-over-year standpoint, you have newly acquired customers who would have qualified for the ACP. We don't have ACP today, and therefore, they have a higher non-pay rate than they would otherwise.'He also said that Spectrum doesn't have a 'pricing issue' due to the value it offers customers. 'So if you think about the short term and the top of the funnel for internet specifically, we don't have a product or pricing issue,' said Winfrey. 'We have the fastest speeds. We have the most reliable product, best WiFi, selling, particularly in bundle, $30 500 megabit per second internet, $40 gig. So it's not a product or pricing issue at the top of the funnel. It's the broader market that I talked about, some brand new competition.' Spectrum faces growing competition, impacting customer numbers Spectrum has recently faced heightened competition from Verizon, AT&T, and T-Mobile, which all offer fixed wireless internet. This service provides internet access to remote or underserved areas at a price that's usually lower than traditional internet services, which is why so many price-conscious consumers are switching to it. Comcast, one of Spectrum's main competitors, even flagged during an earnings call in April that it is seeing 'intense' competition from fixed wireless internet providers. 'I would tell you that the newer competitor in the last few years has obviously been fixed wireless,' said Comcast Chief Financial Officer Jason Armstrong during the call. 'They're adding 1,000,000 subscribers per quarter, so that's sort of the competitive intensity that we're seeing that's sort of incremental. We are competing aggressively with it.' A recent survey from Cord Cutters News revealed that only 40.2% of consumers rely on cable TV companies for their internet service, a significant decline from 45% in late 2024. Also, roughly 11% rely on 5G home internet, an increase from 8.4% just a year ago. Spectrum rolls out a new plan to win back customers To help combat this growing trend, Spectrum will focus on sharpening its value pitch to customers, clarifying through its marketing, time of sale and retention efforts how much money they can save by bundling their phone and internet services. More Telecom News: Verizon's push to make switching harder for customers hits a snag T-Mobile announces generous offer for conflicted customers Amazon pulls the plug on a free service for customers 'When you think about what is on your bill with T-Mobile or Verizon 5G home internet, the reality is, it's dramatically more expensive than what you would pay to Spectrum for an internet mobile product,' said Winfrey. He also said that Spectrum will upgrade its video packages (especially after it also lost 80,000 cable customers during the second quarter) to have more $100 worth of programmer apps, such as Max, Disney+, Hulu, Peacock, etc., at no additional cost to customers, which it hopes will help it retain internet customers. 'That's gonna be the stickiest product,' said Winfrey. 'It's gonna be the best for customers and for programmers, us, and it's gonna be the best for our broadband churn as well.'Spectrum suffers major loss as customers pull the plug on service first appeared on TheStreet on Jul 28, 2025 This story was originally reported by TheStreet on Jul 28, 2025, where it first appeared.
Miami Herald
28-07-2025
- Business
- Miami Herald
Spectrum suffers major loss as customers pull the plug on service
Spectrum, which is operated by Charter Communications (CHTR) , is struggling to shake a growing consumer trend that is harming its business, and it is shifting gears to fix the problem. In Charter's second-quarter earnings report for 2025, it revealed that Spectrum lost about 117,000 internet customers during the quarter, which is almost 6% higher than the number of internet customers it lost during the same time period last year. Don't miss the move: Subscribe to TheStreet's free daily newsletter The steeper customer loss follows Spectrum's decision to raise its monthly internet prices by $3 to $4, depending on the plan, in July last year, frustrating customers. It also warned customers last month that monthly rates for a few of its internet plans would increase by $2, a change that went into effect a few weeks ago. Related: Verizon hopes a new tactic will fix fleeing customer problem Spectrum's recent internet price increases mirror a growing trend in the telecom industry. According to a recent survey from CNET, 63% of U.S. adults saw the monthly price of their home internet service increase last year. On average, they paid $195 more for internet service in 2024 than in 2023. During an earnings call on July 25, Charter CEO Chris Winfrey emphasized the company is operating in a "competitive" environment. He also said that the number of Spectrum customers who have had their service cut off due to non-payment has increased year-over-year, partially due to the end of the Affordable Connectivity Program (ACP). This was a government program that provided eligible households a discount of up to $30 a month for internet service. It was discontinued in February last year. "The reason that non-pay has stepped up year-over-year is because twofold," said Winfrey. "One is you have former ACP customers who are economically challenged and have a higher non-pay rate systemically, without the benefit of the subsidy from a year-over-year standpoint. But in addition to that, from a year-over-year standpoint, you have newly acquired customers who would have qualified for the ACP. We don't have ACP today, and therefore, they have a higher non-pay rate than they would otherwise." Related: Spectrum struggles to reverse alarming customer behavior He also said that Spectrum doesn't have a "pricing issue" due to the value it offers customers. "So if you think about the short term and the top of the funnel for internet specifically, we don't have a product or pricing issue," said Winfrey. "We have the fastest speeds. We have the most reliable product, best WiFi, selling, particularly in bundle, $30 500 megabit per second internet, $40 gig. So it's not a product or pricing issue at the top of the funnel. It's the broader market that I talked about, some brand new competition." Spectrum has recently faced heightened competition from Verizon, AT&T, and T-Mobile, which all offer fixed wireless internet. This service provides internet access to remote or underserved areas at a price that's usually lower than traditional internet services, which is why so many price-conscious consumers are switching to it. Comcast, one of Spectrum's main competitors, even flagged during an earnings call in April that it is seeing "intense" competition from fixed wireless internet providers. "I would tell you that the newer competitor in the last few years has obviously been fixed wireless," said Comcast Chief Financial Officer Jason Armstrong during the call. "They're adding 1,000,000 subscribers per quarter, so that's sort of the competitive intensity that we're seeing that's sort of incremental. We are competing aggressively with it." A recent survey from Cord Cutters News revealed that only 40.2% of consumers rely on cable TV companies for their internet service, a significant decline from 45% in late 2024. Also, roughly 11% rely on 5G home internet, an increase from 8.4% just a year ago. To help combat this growing trend, Spectrum will focus on sharpening its value pitch to customers, clarifying through its marketing, time of sale and retention efforts how much money they can save by bundling their phone and internet services. More Telecom News: Verizon's push to make switching harder for customers hits a snagT-Mobile announces generous offer for conflicted customersAmazon pulls the plug on a free service for customers "When you think about what is on your bill with T-Mobile or Verizon 5G home internet, the reality is, it's dramatically more expensive than what you would pay to Spectrum for an internet mobile product," said Winfrey. He also said that Spectrum will upgrade its video packages (especially after it also lost 80,000 cable customers during the second quarter) to have more $100 worth of programmer apps, such as Max, Disney+, Hulu, Peacock, etc., at no additional cost to customers, which it hopes will help it retain internet customers. "That's gonna be the stickiest product," said Winfrey. "It's gonna be the best for customers and for programmers, us, and it's gonna be the best for our broadband churn as well." Related: Amazon quietly plans to offer customers a convenient new service The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Business Insider
22-07-2025
- Business
- Business Insider
Here's Why AT&T Stock (T) is Gaining Ahead of Q2 Results
AT&T (T) stock climbed nearly 2% today due to rising investor optimism after the company's rival Verizon (VZ) posted better-than-expected Q2 results and raised its full-year guidance. The move is widely seen as a sympathy rally, with Verizon's strong results signaling broader strength across the U.S. telecom sector. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Since AT&T and Verizon compete in the same markets, wireless, broadband, and enterprise, Verizon's upbeat results suggest that AT&T may also be benefiting from similar trends, especially ahead of its own Q2 earnings release, due on Wednesday. VZ's Q2 Snapshot Verizon's Q2 revenue hit $34.5 billion, up 5.2% year-over-year, and its adjusted EPS of $1.22 rose 6.1%. Looking forward, the company raised its 2025 free cash flow and profit forecasts, citing strong demand for premium wireless plans and broadband bundles. Also, Verizon's momentum suggests that consumer demand and pricing power remain intact, another positive sign for AT&T. RBC Capital Optimistic Ahead of AT&T's Q2 Results According to RBC Capital Markets, AT&T is expected to add more consumer wireless broadband users in Q2 compared to last year, which was impacted by changes in the Affordable Connectivity Program (ACP). Also, the firm predicts around 900,000 total net additions across major carriers, including Verizon, AT&T, and T-Mobile (TMUS). The research firm also believes that the extension of bonus depreciation from 2017 will give telecom companies a big boost in free cash flow. Analysts say this could lead to a 9% increase in cash flow estimates, with Charter (CHTR) gaining the most, followed by AT&T. Is AT&T a Buy, Sell, or Hold? Turning to Wall Street, T stock has a Strong Buy consensus rating based on 12 Buys and two Holds assigned in the last three months. At $30.71, the average AT&T price target implies a 12.1% upside potential.
Yahoo
10-07-2025
- Business
- Yahoo
BofA Raises Price Target on Charter Communications (CHTR) to $500 from $450, Maintains a Buy Rating
Charter Communications, Inc. (NASDAQ:CHTR) is one of the . On July 1, analyst Jessica Reif Ehrlich from Bank of America Securities maintained a Buy rating on Charter Communications, Inc. (NASDAQ:CHTR), raising the price target to $500.00 from $450.00. A line of cable boxes and modern televisions, representing the company's video services. The analyst supported the optimistic rating with the company's performance, stating that it is anticipating improvements in broadband subscriber losses, primarily driven by losses related to the Affordable Connectivity Program and the continued success of its Spectrum Life Unlimited offering. Ehrlich further stated that Charter Communications, Inc.'s (NASDAQ:CHTR) introduction of a new seamless video offering and its expansion into rural areas are expected to increase subscriber numbers and reduce churn. The company is poised for stability, according to the analyst, with a modest drop in revenue estimates offset by simultaneous expense reductions, resulting in no impact on EBITDA. Charter Communications, Inc. (NASDAQ:CHTR) provides broadband communications services. The company's offerings include Spectrum TV, Spectrum Internet, and Spectrum Voice. Charter Communications, Inc. (NASDAQ:CHTR) also offers data networking, business-to-business Internet access, video and music entertainment services, business telephone, and wireless backhaul. While we acknowledge the potential of CHTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
