Charter Communications (NASDAQ:CHTR) saw its stock price plummet 6.46% in pre-market trading on Friday following the release of its third-quarter earnings report that fell short of analyst expectations and revealed a decline in internet customers.

The cable giant reported earnings per share (EPS) of $8.34, significantly missing the analyst consensus estimate of $9.37. This represents a 10.97% shortfall compared to expectations. Revenue for the quarter came in at $13.672 billion, also falling short of the projected $13.741 billion and marking a 0.89% decrease from the same period last year.

Charter's disappointing results were further compounded by a decline in its total internet customer base. The company reported a loss of 109,000 internet customers during the quarter, highlighting challenges in retaining subscribers in an increasingly competitive broadband market. However, there was a bright spot in the mobile segment, with Charter adding 493,000 mobile lines.

The company attributed the revenue decline to lower residential video and advertising sales. Charter stated, "Third quarter revenue of $13.7 billion declined by 0.9% year-over-year, driven by lower residential video and advertising sales revenues." On a positive note, residential connectivity revenue showed growth, increasing by 3.8% compared to the same quarter last year.

The combination of missed earnings estimates, revenue decline, and customer losses has clearly spooked investors, leading to the significant pre-market drop in Charter's stock price. As the market opens, all eyes will be on how Charter addresses these challenges and its strategies for reversing the trend of customer attrition in its core internet business.