Charter Communications’ increased 2012 capital expenditure forecast Tuesday may be “scary”...
Charter Communications’ increased 2012 capital expenditure forecast Tuesday may be “scary” to investors, but is “The Right Thing To Do,” said the headline of an analyst’s note to investors the next day. Charter said it will have as much as…
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$1.7 billion this year in capex, 13 percent above the top end of the company’s previous forecast, Credit Suisse’s Stefan Anninger wrote. Converting the company’s systems to all-digital and developing cloud-based services “are not directly tied to tangible revenue growth for the moment, but they should improve Charter’s product portfolio (especially video). Such projects can make investors anxious,” he wrote. “The slowing growth of the telco industry’s video footprint, and Charter’s focus on improving the quality of overall video offerings (e.g., its HD channel offering via its all-digital project, its guide via its cloud-based initiatives), should help to stabilize its troubled video business.” Moving its systems to all-digital in two years (CD Aug 8 p9) is “more accelerated” than Anninger said he expected.