Roughly eight weeks after the Constitution-Cox merger closed, the mixed firm – now branded as Spectrum – launched professional forma numbers associated to the transaction. These figures shed extra mild on Cox’s latest lackluster outcomes whereas highlighting the chance forward for the newly mixed firm because it begins to lengthen Constitution’s pricing and packaging into the previous Cox markets.
Whereas it is not shocking that Cox, like the remainder of its cable friends, has been shedding broadband subscribers, the tempo of these losses was higher than anticipated, New Road Analysis stated in its evaluation (registration required) of the numbers.
Cox shed 316,000 broadband subscribers in Q2 2026, up from a year-ago lack of 238,000 and a lack of 289,000 subs in Q1 2026. By comparability, legacy Constitution, a a lot bigger operator, misplaced 172,000 broadband subs in Q2 2026 and shed 120,000 in Q1 2026.
On a year-to-year foundation in Q2, Cox’s broadband base declined by 5.2% versus a decline of 1.8% for legacy Constitution.
“The subscriber metrics [at Cox] aren’t fairly, however all of us knew that. Broadband subscriber losses are barely greater than we anticipated,” New Road Analysis analyst Vikash Harlalka wrote. “The y/y change in Cox’s broadband subscriber base is almost 3x legacy Constitution.”
Harlalka famous that this hole makes some sense given the upper broadband common income per consumer (ARPU) within the former Cox markets. Broadband ARPU at Cox, he identified, has trended right down to about $86 in latest quarters, whereas Constitution’s ARPU, which has been rising, was within the vary of simply $68 to $70 over the identical interval.
Talking at an investor convention in September, Spectrum CEO Chris Winfrey famous that the corporate noticed a “gross sales uplift” within the former Cox markets forward of the latest Spectrum branding overhaul and the introduction of recent merchandise and packages, together with a suggestion of a free Spectrum Cell line for a 12 months. He did not present any particular figures on the time. Spectrum is scheduled to report Q3 2026 outcomes on November 6.
Large cellular hole
The numbers additionally present a giant buyer disparity between legacy Constitution’s Spectrum Cell service and Cox Cell, which was launched throughout the Cox footprint in early 2023.
Cox added 33,000 cellular traces in Q1 2026, for a complete of 400,000 traces. Legacy Constitution added 406,000 cellular traces in that interval, extending its complete to 12.54 million. On the finish of Q2, the professional forma firm had 12.94 million cellular traces.
Turning to revenues, Harlalka famous that Cox has been seeing a drop of about 4% within the durations introduced (the professional forma submitting goes again to Q1 2024), in comparison with a median income decline of 1% for legacy Constitution.
Can new COO Nick Jeffery transfer the needle?
It’s, in fact, too early to know the way the introduction of Spectrum’s pricing and packaging will enhance the state of affairs within the former Cox markets. However Harlalka stated the info signifies that “Constitution can train Cox some new methods” and presents a possibility for brand spanking new COO Nick Jeffery, who led turnarounds at Frontier Communications and Vodafone UK.
Jeffery just lately applied a “easier, flatter, working construction” at Spectrum as he seems to be to assist the corporate return to broadband subscriber progress, enhance internet promoter scores (NPS) and extra broadly embark on what he known as “The Nice Cable Comeback.”
Spectrum has not detailed what different modifications Jeffery has in retailer for Spectrum, however Harlalka famous that he “has his work lower out” for him.
“Given his [Jeffery’s] monitor file at Frontier, we might be shocked if he does not have no less than some affect on these developments” within the former Cox markets, the analyst added.
