Cable and internet provider Optimum continues to bleed customers at an alarming rate even as it lost money.
The company reported fourth-quarter results that showed subscribers were dropping cable TV, broadband, and phone services. For the fourth-quarter, it lost 27,000 internet subscribers, 62,200 cable TV subscribers, and 57,400 phone subscribers. For the year, those totals are even worse, with losses of 114,000, 266,700, and 248,900, respectively.
The figures underscore the grim reality of a cable company facing pressure from both the rise of home 5G service and cord cutting, with consumers opting out of traditional cable and phone services in favor of streaming and their wireless phones. The cable industry had pointed to broadband as a saving grace, since you still need an online connection for all of those other services. But as with Comcast and Spectrum, Optimum posted wider losses than a year ago.
Optimum, owned by parent Altice USA, has actually been cutting the rates of its plans to start 2024, likely in a bid to retain and attract new customers. The company also touted its customer service improvements, although cable, and Optimum, are among the lowest rated services.
“2023 marked the beginning of a transformative journey for Optimum as we drove significant improvements across every area of our business by acting with operational and financial discipline,” said Dennis Mathew, CEO of Altice USA.
Overall, Altice USA lost $117.8 million, or 26 cents a share, while revenue fell 2.9% to $2.3 billion.
Analysts had expected Altice USA to post revenue of $2.29 billion, according to Yahoo Finance.
Correction: The story previously said it lost 57.4 million phone subscribers.