03:17 PM EDT, 06/28/2024 (MT Newswires) -- Charter Communications' ( CHTR ) broadband subscriber losses probably increased in Q2 and are likely to worsen in Q3 as the US Congress-funded Affordable Connectivity Program ends, UBS Securities said Friday in a report.

The US cable company is expected to report a decline of 1% for both Q2 revenue and EBITDA from a year earlier, the report said.

Charter probably 264,000 broadband subscribers in Q2, compared with 72,000 losses in Q1, trailing the prior estimate of 314,000, due to lower seasonal impact and delayed churn from ACP, UBS said.

In Q3, broadband subscriber losses may be 356,000 due to a higher ACP churn, the report said.

Midyear price increases, high-margin political advertising revenue and cost efficiencies may help Charter return to revenue and EBITDA growth H2, UBS said.

The firm expects growth of 0.6% for revenue and 1.8% for EBITDA in 2024, up from forecasts of 0.1% for revenue and 1.2% for EBITDA.

UBS has a neutral rating on the stock and a $325 price target.

Charter's shares rose 1.8% in recent trading Friday.

Price: 299.53, Change: +5.42, Percent Change: +1.84