Charter: CFO Reiterated FY21 Outlook & Strategy at BofA Conference (on Monday)
(Substack Exclusive) Company Update (CHTR US) (Buy)
Introduction: Charter CFO Chris Winfrey appeared at an investor conference (with BofA) on Monday, largely confirming the same FY21 net add outlook (with Q3 having a tougher 2019 comparable than Q2) and overall strategy as before, and CHTR shares rose 2.2% that day. This was before a similar appearance by peer Comcast’s CFO on Tuesday sent US Cable shares down significantly. As of Wednesday morning, CHTR is currently up 1.7%, which means it is now just 1.1% down this week.
Charter Strategy & Priorities: No Change
CHTR opportunity is “the same it’s always been” - underpenetrated market, superior offering, multiple-product bundle that is hard for competitors to replicate at same price
CHTR has 54m homes passed, of which 30m are Internet customers - the remaining 24m households should be customers too. Similarly, only 2m of the 30m are CHTR Mobile customers - that % should grow “significantly”
CHTR strategy is to keep its product superior and hard to replicate, and to keep its prices low; go…