Charter plummets nearly 12% on big subscriber losses, drags cable stocks down

A Charter office on San Fernando Road in Glendale, California.

Shares of Charter Communications tumbled 11.7 percent on Friday after the company reported a bigger-than-expected loss of video subscribers for the previous quarter.

The company reported a loss of 122,000 video subscribers for the first quarter. Analysts polled by StreetAccount expected a loss of 43,000. Charter also added 331,000 internet subscribers, less than a forecast of 370,000 additions.

“The changes in the video business are significant and hard to predict, but there’s video growth capable inside of our asset base,” CEO Tom Rutledge said during a conference call.

Charter’s sharp losses dragged shares of other cable companies lower. Comcast’s stock fell 4.6 percent, while shares of Altice USA dropped 9.3 percent.

Cable companies have been under pressure in recent years as consumers shift away from traditional cable services to over-the-top options like Netflix and Hulu, for example.