STAMFORD, Conn., July 29,
2022 /PRNewswire/ -- Charter Communications, Inc.
(along with its subsidiaries, the "Company" or "Charter") today
reported financial and operating results for the three and six
months ended June 30, 2022.
![Charter Communications Logo. (PRNewsfoto/Charter Communications, Inc.) Charter Communications Logo. (PRNewsfoto/Charter Communications, Inc.)](https://mma.prnewswire.com/media/76092/charter_communications_logo.jpg)
- Second quarter total residential and small and medium business
("SMB") mobile lines increased by 344,000. As of June 30, 2022, Charter served a total of 4.3
million mobile lines.
- Second quarter total residential and SMB Internet customers
increased by 38,000 when excluding 59,000 customer disconnects
related to the discontinuation of the Emergency Broadband Benefit
program and additional requirements of the Affordable Connectivity
Program. Including the unfavorable transition impact, second
quarter total residential and SMB Internet customers decreased by
21,000. As of June 30, 2022, Charter
served a total of 30.3 million residential and SMB Internet
customers.
- As of June 30, 2022, Charter had
a total of 32.1 million residential and SMB customer relationships,
which excludes mobile-only relationships.
- Second quarter revenue of $13.6
billion grew by 6.2% year-over-year, driven by residential
revenue growth of 4.5%, mobile revenue growth of 39.8% and
commercial revenue growth of 4.2%.
- Net income attributable to Charter shareholders totaled
$1.5 billion in the second quarter,
an increase of 44.2% year-over-year.
- Second quarter Adjusted EBITDA1 of $5.5 billion grew by 9.7% year-over-year.
- Second quarter capital expenditures totaled $2.2 billion and included $357 million of rural construction initiative
capital expenditures and $95 million
of mobile-related capital expenditures.
- Second quarter net cash flows from operating activities totaled
$3.7 billion, compared to
$4.0 billion in the prior year
quarter.
- Second quarter free cash flow1 of $1.7 billion decreased by 19.8% year-over-year,
primarily due to higher cash taxes and capital expenditures
associated with Charter's rural construction initiative.
- During the second quarter, Charter purchased 8.3 million shares
of Charter Class A common stock and Charter Communications
Holdings, LLC ("Charter Holdings") common units for approximately
$4.3 billion.
"Our growth has always been driven by offering value-rich
packages at prices customers can afford," said Tom Rutledge, Chairman and CEO of Charter
Communications. "Looking forward, we remain well-positioned to grow
our business using that same strategy. Our fixed and mobile
broadband services continue to converge, and we offer a unique
connectivity package while meaningfully reducing customer bills. So
there is a large opportunity for us to save customers money, which
in turn raises connects, reduces churn and drives overall customer
relationship growth."
1.
|
Adjusted EBITDA and
free cash flow are non-GAAP measures defined in the "Use of
Adjusted EBITDA and Free Cash Flow Information" section and are
reconciled to net income attributable to Charter shareholders and
net cash flows from operating activities, respectively, in the
addendum of this news release.
|
Key Operating
Results
|
|
|
Approximate as
of
|
|
|
|
|
June 30, 2022
(a)
|
|
June 30, 2021
(a)
|
|
Y/Y
Change
|
Footprint
(b)
|
|
|
|
|
|
|
Estimated
Passings
|
|
55,008
|
|
54,000
|
|
1.9 %
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
Residential
|
|
29,942
|
|
29,660
|
|
1.0 %
|
SMB
|
|
2,182
|
|
2,104
|
|
3.7 %
|
Total Customer
Relationships
|
|
32,124
|
|
31,764
|
|
1.1 %
|
|
|
|
|
|
|
|
Residential
|
|
(93)
|
|
299
|
|
(392)
|
SMB
|
|
19
|
|
33
|
|
(14)
|
Total Customer
Relationships Quarterly Net Additions
|
|
(74)
|
|
332
|
|
(406)
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
58.4 %
|
|
58.8 %
|
|
(0.4) ppts
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
116.00
|
|
$
112.85
|
|
2.8 %
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
165.66
|
|
$
166.28
|
|
(0.4) %
|
|
|
|
|
|
|
|
Residential Customer
Relationships Penetration
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
47.8 %
|
|
45.7 %
|
|
2.1 ppts
|
Double Play
Penetration (g)
|
|
33.1 %
|
|
32.7 %
|
|
0.4 ppts
|
Triple Play
Penetration (g)
|
|
19.1 %
|
|
21.6 %
|
|
(2.5) ppts
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
50.4 %
|
|
48.0 %
|
|
2.4 ppts
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
Residential
|
|
28,259
|
|
27,722
|
|
1.9 %
|
SMB
|
|
1,994
|
|
1,912
|
|
4.3 %
|
Total Internet
Customers
|
|
30,253
|
|
29,634
|
|
2.1 %
|
|
|
|
|
|
|
|
Residential
|
|
(42)
|
|
365
|
|
(407)
|
SMB
|
|
21
|
|
35
|
|
(14)
|
Total Internet
Quarterly Net Additions
|
|
(21)
|
|
400
|
|
(421)
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Residential
|
|
14,853
|
|
15,420
|
|
(3.7) %
|
SMB
|
|
642
|
|
592
|
|
8.4 %
|
Total Video
Customers
|
|
15,495
|
|
16,012
|
|
(3.2) %
|
|
|
|
|
|
|
|
Residential
|
|
(240)
|
|
(63)
|
|
(177)
|
SMB
|
|
14
|
|
13
|
|
1
|
Total Video
Quarterly Net Additions
|
|
(226)
|
|
(50)
|
|
(176)
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
Residential
|
|
8,200
|
|
9,014
|
|
(9.0) %
|
SMB
|
|
1,287
|
|
1,259
|
|
2.2 %
|
Total Voice
Customers
|
|
9,487
|
|
10,273
|
|
(7.6) %
|
|
|
|
|
|
|
|
Residential
|
|
(265)
|
|
(99)
|
|
(166)
|
SMB
|
|
(1)
|
|
21
|
|
(22)
|
Total Voice
Quarterly Net Additions
|
|
(266)
|
|
(78)
|
|
(188)
|
|
|
|
|
|
|
|
Mobile Lines
(h)
|
|
|
|
|
|
|
Residential
|
|
4,134
|
|
2,855
|
|
44.8 %
|
SMB
|
|
147
|
|
85
|
|
73.2 %
|
Total Mobile
Lines
|
|
4,281
|
|
2,940
|
|
45.6 %
|
|
|
|
|
|
|
|
Residential
|
|
329
|
|
250
|
|
79
|
SMB
|
|
15
|
|
15
|
|
—
|
Total Mobile
Lines Quarterly Net Additions
|
|
344
|
|
265
|
|
79
|
|
|
|
|
|
|
|
Enterprise
(i)
|
|
|
|
|
|
|
Enterprise Primary
Service Units ("PSUs")
|
|
277
|
|
265
|
|
4.7 %
|
Enterprise Quarterly
Net Additions
|
|
3
|
|
4
|
|
(1)
|
Footnotes - In thousands, except
per customer and penetration data. See footnotes to unaudited
summary of operating statistics on page 6 of the addendum of this
news release. The footnotes contain important disclosures regarding
the definitions used for these operating statistics. All
percentages are calculated using whole numbers. Minor differences
may exist due to rounding.
|
As of June 30, 2022, Charter had 29.9 million
residential customer relationships, with year-over-year growth of
1.0%.
Second quarter residential Internet customers increased by
17,000 when excluding 59,000 customer disconnects related to the
discontinuation of the Emergency Broadband Benefit program and
additional requirements of the Affordable Connectivity Program.
Including the unfavorable transition impact, second quarter
residential Internet customers decreased by 42,000, compared to an
increase of 365,000 customers during the second quarter of 2021.
Currently, 300 Mbps is the minimum speed offered to new Spectrum
Internet® customers across Charter's footprint. As
of June 30, 2022, over 80% of total Internet customers
subscribed to tiers that provided 300 Mbps or more of speed.
Charter also offers Spectrum Internet Ultra (500 Mbps) and
Spectrum Internet Gig (1 Gbps) across its entire footprint.
Charter's Advanced Home WiFi, a managed WiFi service that provides
customers an optimized home network while providing greater control
of their connected devices, is available to nearly all Spectrum
Internet customers.
Residential video customers decreased by 240,000 in the second
quarter of 2022, compared to a decline of 63,000 in the second
quarter of 2021, partly driven by downgrades following an April
pass through of higher programming expense. As of June 30,
2022, Charter had 14.9 million residential video
customers.
During the second quarter of 2022, residential wireline voice
customers declined by 265,000, compared to a decline of 99,000 in
the second quarter of 2021. As of June 30, 2022, Charter had
8.2 million residential wireline voice customers.
Second quarter 2022 residential revenue per residential customer
(excluding mobile) totaled $116.00,
and increased by 2.8% compared to the prior year period, given
promotional rate step-ups and rate adjustments that in part pass
through programmer rate increases, partly offset by a higher mix of
non-video customer relationships and a higher mix of lower priced
video packages within Charter's video customer base.
SMB customer relationships grew by 19,000 in the second quarter
of 2022, while second quarter 2021 SMB customer relationships grew
by 33,000. Enterprise PSUs grew by 3,000 in the second quarter of
2022 versus 4,000 added in the second quarter of 2021.
During the second quarter of 2022, Charter added 344,000 mobile
lines, compared to growth of 265,000 during the second quarter of
2021. Spectrum MobileTM is available to all
new and existing Spectrum Internet customers. Spectrum
Mobile customers can choose "Unlimited" or "By the Gig" data
plans. In October 2021, Spectrum
Mobile introduced new Unlimited pricing starting at
$29.99/month per Unlimited line for
customers with at least two lines. Additionally, customers qualify
for the new multiline pricing when combining By the Gig lines for
$14/GB with Unlimited lines. All
Spectrum Mobile plans offer the fastest overall
speeds1, include 5G access and taxes and fees and do not
require contracts. Spectrum Mobile's multiline Unlimited
pricing is part of Charter's converged network strategy to provide
consumers a differentiated connectivity experience with highly
competitive, simple data plans and pricing.
1.
|
Fastest Overall Speed
claim based on Global Wireless Solutions' combined cellular and
WiFi speed test results in Spectrum service area where WiFi is
available. Cellular speeds vary by location.
|
Second Quarter Financial
Results
(in
millions)
|
|
Three Months Ended
June 30,
|
|
2022
|
|
2021
|
|
%
Change
|
Revenues:
|
|
|
|
|
|
Internet
|
$ 5,562
|
|
$ 5,221
|
|
6.5 %
|
Video
|
4,484
|
|
4,378
|
|
2.4 %
|
Voice
|
398
|
|
394
|
|
1.0 %
|
Residential
revenue
|
10,444
|
|
9,993
|
|
4.5 %
|
Small and medium
business
|
1,080
|
|
1,042
|
|
3.7 %
|
Enterprise
|
669
|
|
636
|
|
4.9 %
|
Commercial
revenue
|
1,749
|
|
1,678
|
|
4.2 %
|
Advertising
sales
|
460
|
|
411
|
|
12.0 %
|
Mobile
|
726
|
|
519
|
|
39.8 %
|
Other
|
219
|
|
201
|
|
8.8 %
|
Total
Revenues
|
$
13,598
|
|
$
12,802
|
|
6.2 %
|
|
|
|
|
|
|
Net income attributable
to Charter shareholders
|
$ 1,471
|
|
$ 1,020
|
|
44.2 %
|
Net income attributable
to Charter shareholders margin
|
10.8 %
|
|
8.0 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
$ 5,509
|
|
$ 5,020
|
|
9.7 %
|
Adjusted EBITDA
margin
|
40.5 %
|
|
39.2 %
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$ 2,193
|
|
$ 1,881
|
|
16.6 %
|
% Total
Revenues
|
16.1 %
|
|
14.7 %
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$ 3,734
|
|
$ 3,999
|
|
(6.6) %
|
Free cash
flow1
|
$ 1,659
|
|
$ 2,068
|
|
(19.8) %
|
1.
|
See page 1 of the
addendum for a GAAP reconciliation of Adjusted EBITDA and free cash
flow.
|
Revenues
Second quarter revenue increased by 6.2% year-over-year to
$13.6 billion, driven primarily by
growth in residential, mobile and commercial revenues.
Residential revenue totaled $10.4
billion in the second quarter, an increase of 4.5%
year-over-year.
Internet revenue grew by 6.5% year-over-year to $5.6 billion, driven by growth in Internet
customers during the last year, promotional rate step-ups and
reduced bundled discounts, partly offset by lower bundled revenue
allocation.
Video revenue totaled $4.5 billion
in the second quarter, an increase of 2.4% compared to the prior
year period, driven by promotional rate step-ups, video rate
adjustments that pass through programmer rate increases and higher
bundled revenue allocation, mostly offset by a higher mix of lower
priced video packages within Charter's video customer base and a
decline in video customers during the last year.
Voice revenue totaled $398
million in the second quarter, an increase of 1.0% compared
to the second quarter of 2021, driven by voice rate adjustments,
partly offset by a decline in wireline voice customers over the
last twelve months.
Commercial revenue increased by 4.2% year-over-year to
$1.7 billion, driven by SMB and
enterprise revenue growth of 3.7% and 4.9% year-over-year,
respectively. Second quarter 2022 SMB revenue growth was driven by
customer relationship growth. Enterprise revenue excluding
wholesale increased by 8.2% year-over-year, mostly reflecting PSU
growth.
Second quarter advertising sales revenue of $460 million increased by 12.0% compared to the
year-ago quarter, primarily driven by higher political revenue.
Excluding political revenue in both periods, advertising sales
revenue decreased by 0.7% year-over-year, due to lower local and
national advertising revenue, particularly in the automotive
category, partly offset by higher advanced advertising revenue.
Second quarter mobile revenue totaled $726 million, an increase of 39.8%
year-over-year, driven by mobile line growth.
Operating Costs and Expenses
Second quarter programming costs decreased by $6 million, or 0.2% as compared to the second
quarter of 2021, reflecting fewer video customers and a higher mix
of lower cost packages within Charter's video customer base, mostly
offset by contractual programming increases and renewals.
Regulatory, connectivity and produced content expenses decreased
by $69 million, or 10.3%
year-over-year, primarily driven by lower sports rights costs given
a normalized game schedule in the second quarter of 2022 compared
to the second quarter of 2021 when more games were played due to a
delayed start of the 2020-2021 NBA season and lower video CPE sold
to customers.
Costs to service customers increased by $93 million, or 5.1% year-over-year. The
year-over-year increase in costs to service customers was primarily
driven by low bad debt in the second quarter of 2021, which
benefited from government stimulus packages and higher bad debt in
the second quarter of 2022. Costs to service customers excluding
bad debt increased by 1.1% year-over-year primarily due to a larger
customer base and higher fuel costs, partly offset by productivity
improvements.
Marketing expenses increased by $65
million, or 8.6% year-over-year, due to higher labor costs
driven by previously announced wage increases to a $20 per hour starting wage and higher staffing
levels as Charter completes the insourcing of its inbound sales and
retention call centers with a focus on providing better service to
new and existing customers.
Second quarter mobile costs totaled $797
million, an increase of 35.9% year-over-year, and were
comprised of device costs, customer acquisition costs, and service
and operating costs.
Other expenses increased by $13
million, or 1.3% as compared to the second quarter of
2021.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled
$1.5 billion in the second quarter of
2022, compared to $1.0
billion in the second quarter of 2021. The year-over-year
increase in net income attributable to Charter shareholders was
primarily driven by higher Adjusted EBITDA.
Net income per basic common share attributable to Charter
shareholders totaled $8.96 in the
second quarter of 2022 compared to $5.48 during the same period last year. The
increase was primarily the result of the factors described above in
addition to an 11.8% decrease in basic weighted average common
shares outstanding versus the prior year period.
Adjusted EBITDA
Second quarter Adjusted EBITDA of $5.5
billion grew by 9.7% year-over-year, reflecting growth
in revenue and operating expenses of 6.2% and 3.9%,
respectively.
Capital Expenditures
Property, plant and equipment expenditures totaled $2.2 billion in the second quarter of 2022,
compared to $1.9 billion during the
second quarter of 2021, primarily driven by an increase in line
extensions and customer premise equipment ("CPE"), partly offset by
a decrease in scalable infrastructure. The increase in line
extensions was due to Charter's rural construction initiative. The
increase in CPE was primarily due to higher spend on Advanced Home
WiFi equipment. The decrease in scalable infrastructure was
primarily related to timing of spend. Second quarter capital
expenditures included $357 million of
rural construction initiative spend, most of which was included in
line extensions. Second quarter capital expenditures also included
$95 million of mobile costs, most of
which related to information technology systems and CBRS small cell
construction and were included in support capital and scalable
infrastructure.
Charter currently expects full year 2022 cable capital
expenditures, excluding capital expenditures associated with its
rural construction initiative, to be between $7.1 billion and $7.3
billion.
Cash Flow and Free Cash Flow
During the second quarter of 2022, net cash flows from operating
activities totaled $3.7 billion,
compared to $4.0 billion in the prior
year quarter. The year-over-year decrease in net cash flows from
operating activities was primarily due to higher cash taxes, higher
cash paid for interest and an unfavorable change in working
capital, excluding the changes in accrued interest and taxes and
accrued expenses related to capital expenditures, partly offset by
higher Adjusted EBITDA.
Free cash flow in the second quarter of 2022 totaled
$1.7 billion, compared to
$2.1 billion during the same period
last year. The year-over-year decrease in free cash flow was
primarily driven by a decrease in net cash flows from operating
activities and an increase in capital expenditures.
Liquidity & Financing
As of June 30, 2022, total principal amount of debt was
$95.7 billion and Charter's credit
facilities provided approximately $4.4
billion of additional liquidity in excess of Charter's
$483 million cash position.
In May 2022, Charter
Communications Operating, LLC ("Charter Operating") entered into an
amendment to its credit agreement (the "Amendment") to: (i) upsize
term A loans by $2.3 billion to
$6.05 billion and extend the maturity
to August 31, 2027 from March 31, 2023 and February 1, 2025, (ii) create and borrow a new
tranche of $500 million of term A-6
loans maturing August 31, 2028, (iii)
increase the size of Charter Operating's revolving credit facility
and extend the maturity date to August 31,
2027 from March 31, 2023 and
February 1, 2025 and (iv) make
certain other amendments to the credit agreement. Charter used a
portion of the proceeds from the Amendment to repay all of the term
A-2 loans, term A-4 loans and borrowings under the revolving credit
facility outstanding prior to the effective date of the
Amendment.
After giving effect to the Amendment: (i) the aggregate
principal amount of term A-5 loans outstanding is $6.05 billion with a pricing of Secured Overnight
Financing Rate ("SOFR") plus 1.25%, (ii) the aggregate principal
amount of term A-6 loans outstanding is $500
million with a pricing of SOFR plus 1.50% and (iii) the
aggregate amount of the revolving credit facility increased to a
total capacity of $5.5 billion and
the interest rate benchmark changed from London Interbank Offering
Rate ("LIBOR") to SOFR, with a pricing of SOFR plus 1.25%. The
aggregate principal amount of term B-1 loans (maturing April 30, 2025) and term B-2 loans (maturing
February 1, 2027) outstanding are
$2.4 billion and $3.7 billion, respectively, with LIBOR-based
pricing unchanged.
Share Repurchases
During the three months ended June 30, 2022, Charter
purchased 8.3 million shares of Charter Class A common stock and
Charter Holdings common units for approximately $4.3 billion. During the six months ended
June 30, 2022, Charter purchased 14.3 million shares of
Charter Class A common stock and Charter Holdings common units, or
7.2% of fully diluted shares outstanding (including as-exchanged
Charter Holdings common units) as of December 31, 2021, for approximately $7.8 billion.
Webcast
Charter will host a webcast on Friday, July 29, 2022 at
8:30 a.m. Eastern Time (ET) related
to the contents of this release.
The webcast can be accessed live via the Company's investor
relations website at ir.charter.com. Participants should go to the
webcast link no later than 10 minutes prior to the start time to
register. The webcast will be archived at ir.charter.com two
hours after completion of the webcast.
Additional Information
Available on Website
The information in this press release should be read in
conjunction with the financial statements and footnotes contained
in the Company's Quarterly Report on Form 10-Q for the three and
six months ended June 30, 2022, which
will be posted on the "Results & SEC Filings" section of the
Company's investor relations website at ir.charter.com, when it is
filed with the Securities and Exchange Commission (the "SEC"). A
slide presentation to accompany the conference call and a trending
schedule containing historical customer and financial data will
also be available in the "Results & SEC Filings" section.
Use of Adjusted EBITDA
and Free Cash Flow Information
The Company uses certain measures that are not defined by U.S.
generally accepted accounting principles ("GAAP") to evaluate
various aspects of its business. Adjusted EBITDA and free cash flow
are non-GAAP financial measures and should be considered in
addition to, not as a substitute for, net income attributable to
Charter shareholders and net cash flows from operating activities
reported in accordance with GAAP. These terms, as defined by
Charter, may not be comparable to similarly titled measures used by
other companies. Adjusted EBITDA and free cash flow are reconciled
to net income attributable to Charter shareholders and net cash
flows from operating activities, respectively, in the Addendum to
this release.
Adjusted EBITDA is defined as net income attributable to Charter
shareholders plus net income attributable to noncontrolling
interest, net interest expense, income taxes, depreciation and
amortization, stock compensation expense, other income (expenses),
net and other operating (income) expenses, net, such as special
charges and (gain) loss on sale or retirement of assets. As such,
it eliminates the significant non-cash depreciation and
amortization expense that results from the capital-intensive nature
of the Company's businesses as well as other non-cash or special
items, and is unaffected by the Company's capital structure or
investment activities. However, this measure is limited in that it
does not reflect the periodic costs of certain capitalized tangible
and intangible assets used in generating revenues and the cash cost
of financing. These costs are evaluated through other financial
measures.
Free cash flow is defined as net cash flows from operating
activities, less capital expenditures and changes in accrued
expenses related to capital expenditures.
Management and Charter's board of directors use Adjusted EBITDA
and free cash flow to assess Charter's performance and its ability
to service its debt, fund operations and make additional
investments with internally generated funds. In addition, Adjusted
EBITDA generally correlates to the leverage ratio calculation under
the Company's credit facilities or outstanding notes to determine
compliance with the covenants contained in the facilities and notes
(all such documents have been previously filed with the SEC). For
the purpose of calculating compliance with leverage covenants, the
Company uses Adjusted EBITDA, as presented, excluding certain
expenses paid by its operating subsidiaries to other Charter
entities. The Company's debt covenants refer to these expenses as
management fees, which were $348
million and $690 million for
the three and six months ended June 30, 2022, respectively,
and $365 million and $642 million for the three and six months ended
June 30, 2021, respectively.
About Charter
Charter Communications, Inc. (NASDAQ:CHTR) is a leading
broadband connectivity company and cable operator serving more than
32 million customers in 41 states through its Spectrum brand. Over
an advanced communications network, the Company offers a full range
of state-of-the-art residential and business services including
Spectrum Internet®, TV, Mobile and Voice.
For small and medium-sized companies, Spectrum
Business® delivers the same suite of broadband products
and services coupled with special features and applications to
enhance productivity, while for larger businesses and government
entities, Spectrum Enterprise provides highly customized,
fiber-based solutions. Spectrum Reach® delivers tailored
advertising and production for the modern media landscape. The
Company also distributes award-winning news coverage, sports and
high-quality original programming to its customers through Spectrum
Networks and Spectrum Originals. More information about Charter can
be found at corporate.charter.com.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING STATEMENTS
This communication includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of
1934, as amended, regarding, among other things, our plans,
strategies and prospects, both business and financial.
Although we believe that our plans, intentions and expectations as
reflected in or suggested by these forward-looking statements are
reasonable, we cannot assure you that we will achieve or realize
these plans, intentions or expectations. Forward-looking
statements are inherently subject to risks, uncertainties and
assumptions including, without limitation, the factors described
under "Risk Factors" from time to time in our filings with the
SEC. Many of the forward-looking statements contained in this
communication may be identified by the use of forward-looking words
such as "believe," "expect," "anticipate," "should," "planned,"
"will," "may," "intend," "estimated," "aim," "on track," "target,"
"opportunity," "tentative," "positioning," "designed," "create,"
"predict," "project," "initiatives," "seek," "would," "could,"
"continue," "ongoing," "upside," "increases," "grow," "focused on"
and "potential," among others. Important factors that could
cause actual results to differ materially from the forward-looking
statements we make in this communication are set forth in our
annual report on Form 10-K, and in other reports or documents that
we file from time to time with the SEC, and include, but are not
limited to:
- our ability to sustain and grow revenues and cash flow from
operations by offering Internet, video, voice, mobile, advertising
and other services to residential and commercial customers, to
adequately meet the customer experience demands in our service
areas and to maintain and grow our customer base, particularly in
the face of increasingly aggressive competition, the need for
innovation and the related capital expenditures;
- the impact of competition from other market participants,
including but not limited to incumbent telephone companies, direct
broadcast satellite ("DBS") operators, wireless broadband and
telephone providers, digital subscriber line ("DSL") providers,
fiber to the home providers and providers of video content over
broadband Internet connections;
- general business conditions, unemployment levels and the level
of activity in the housing sector and economic uncertainty or
downturn, including the impacts of the Novel Coronavirus
("COVID-19") pandemic to sales opportunities from residential move
activity, our customers, our vendors and local, state and federal
governmental responses to the pandemic;
- our ability to obtain programming at reasonable prices or to
raise prices to offset, in whole or in part, the effects of higher
programming costs (including retransmission consents and
distribution requirements);
- our ability to develop and deploy new products and technologies
including consumer services and service platforms;
- any events that disrupt our networks, information systems or
properties and impair our operating activities or our
reputation;
- the effects of governmental regulation on our business
including subsidies to consumers, subsidies and incentives for
competitors, costs, disruptions and possible limitations on
operating flexibility related to, and our ability to comply with,
regulatory conditions applicable to us;
- the ability to hire and retain key personnel;
- our ability to procure necessary services and equipment from
our vendors in a timely manner and at reasonable costs;
- the availability and access, in general, of funds to meet our
debt obligations prior to or when they become due and to fund our
operations and necessary capital expenditures, either through (i)
cash on hand, (ii) free cash flow, or (iii) access to the capital
or credit markets; and
- our ability to comply with all covenants in our indentures and
credit facilities, any violation of which, if not cured in a timely
manner, could trigger a default of our other obligations under
cross-default provisions.
All forward-looking statements attributable to us or any person
acting on our behalf are expressly qualified in their entirety by
this cautionary statement. We are under no duty or obligation
to update any of the forward-looking statements after the date of
this communication.
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED
RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(dollars in
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income attributable
to Charter shareholders
|
$
1,471
|
|
$
1,020
|
|
$
2,674
|
|
$
1,827
|
Plus: Net income
attributable to noncontrolling interest
|
237
|
|
138
|
|
423
|
|
252
|
Interest expense,
net
|
1,109
|
|
1,004
|
|
2,169
|
|
1,987
|
Income tax
expense
|
489
|
|
281
|
|
834
|
|
497
|
Depreciation and
amortization
|
2,240
|
|
2,354
|
|
4,534
|
|
4,795
|
Stock compensation
expense
|
104
|
|
100
|
|
251
|
|
234
|
Other (income)
expenses, net
|
(141)
|
|
123
|
|
(163)
|
|
373
|
Adjusted
EBITDA
|
$
5,509
|
|
$
5,020
|
|
$
10,722
|
|
$
9,965
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$
3,734
|
|
$
3,999
|
|
$
7,381
|
|
$
7,750
|
Less: Purchases
of property, plant and equipment
|
(2,193)
|
|
(1,881)
|
|
(4,050)
|
|
(3,702)
|
Change in accrued
expenses related to capital expenditures
|
118
|
|
(50)
|
|
128
|
|
(125)
|
Free cash
flow
|
$
1,659
|
|
$
2,068
|
|
$
3,459
|
|
$
3,923
|
|
The above schedule is
presented in order to reconcile Adjusted EBITDA and free cash flow,
non-GAAP measures, to the most directly comparable GAAP measures in
accordance with Section 401(b) of the Sarbanes-Oxley
Act.
|
UNAUDITED
ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA
(dollars in
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
Internet
|
$
5,562
|
|
$
5,221
|
|
6.5 %
|
|
$ 11,014
|
|
$ 10,307
|
|
6.9 %
|
Video
|
4,484
|
|
4,378
|
|
2.4 %
|
|
8,830
|
|
8,722
|
|
1.2 %
|
Voice
|
398
|
|
394
|
|
1.0 %
|
|
789
|
|
793
|
|
(0.5) %
|
Residential
revenue
|
10,444
|
|
9,993
|
|
4.5 %
|
|
20,633
|
|
19,822
|
|
4.1 %
|
Small and medium
business
|
1,080
|
|
1,042
|
|
3.7 %
|
|
2,139
|
|
2,054
|
|
4.1 %
|
Enterprise
|
669
|
|
636
|
|
4.9 %
|
|
1,330
|
|
1,274
|
|
4.3 %
|
Commercial
revenue
|
1,749
|
|
1,678
|
|
4.2 %
|
|
3,469
|
|
3,328
|
|
4.2 %
|
Advertising
sales
|
460
|
|
411
|
|
12.0 %
|
|
843
|
|
755
|
|
11.8 %
|
Mobile
|
726
|
|
519
|
|
39.8 %
|
|
1,416
|
|
1,011
|
|
40.0 %
|
Other
|
219
|
|
201
|
|
8.8 %
|
|
437
|
|
408
|
|
7.0 %
|
Total
Revenues
|
13,598
|
|
12,802
|
|
6.2 %
|
|
26,798
|
|
25,324
|
|
5.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Programming
|
2,972
|
|
2,978
|
|
(0.2) %
|
|
5,949
|
|
5,966
|
|
(0.3) %
|
Regulatory,
connectivity and produced content
|
599
|
|
668
|
|
(10.3) %
|
|
1,155
|
|
1,268
|
|
(8.9) %
|
Costs to service
customers
|
1,920
|
|
1,827
|
|
5.1 %
|
|
3,819
|
|
3,631
|
|
5.2 %
|
Marketing
|
806
|
|
741
|
|
8.6 %
|
|
1,632
|
|
1,492
|
|
9.4 %
|
Mobile
|
797
|
|
586
|
|
35.9 %
|
|
1,557
|
|
1,158
|
|
34.4 %
|
Other expense
(a)
|
995
|
|
982
|
|
1.3 %
|
|
1,964
|
|
1,844
|
|
6.5 %
|
Total operating
costs and expenses (a)
|
8,089
|
|
7,782
|
|
3.9 %
|
|
16,076
|
|
15,359
|
|
4.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
5,509
|
|
$
5,020
|
|
9.7 %
|
|
$ 10,722
|
|
$
9,965
|
|
7.6 %
|
|
|
(a)
|
Other expense excludes
stock compensation expense. Total operating costs and
expenses excludes stock compensation expense, depreciation and
amortization and other operating (income) expenses, net.
|
|
|
All percentages are
calculated using whole numbers. Minor differences may exist due to
rounding.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF
OPERATIONS
(dollars in
millions, except per share data)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
REVENUES
|
$
13,598
|
|
$
12,802
|
|
$
26,798
|
|
$
25,324
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Operating costs and
expenses (exclusive of items shown separately below)
|
8,193
|
|
7,882
|
|
16,327
|
|
15,593
|
Depreciation and
amortization
|
2,240
|
|
2,354
|
|
4,534
|
|
4,795
|
Other operating
(income) expenses, net
|
(62)
|
|
(9)
|
|
(61)
|
|
293
|
|
10,371
|
|
10,227
|
|
20,800
|
|
20,681
|
Income from
operations
|
3,227
|
|
2,575
|
|
5,998
|
|
4,643
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES):
|
|
|
|
|
|
|
|
Interest expense,
net
|
(1,109)
|
|
(1,004)
|
|
(2,169)
|
|
(1,987)
|
Other income
(expense), net
|
79
|
|
(132)
|
|
102
|
|
(80)
|
|
(1,030)
|
|
(1,136)
|
|
(2,067)
|
|
(2,067)
|
Income before income
taxes
|
2,197
|
|
1,439
|
|
3,931
|
|
2,576
|
Income tax
expense
|
(489)
|
|
(281)
|
|
(834)
|
|
(497)
|
Consolidated net
income
|
1,708
|
|
1,158
|
|
3,097
|
|
2,079
|
Less: Net income
attributable to noncontrolling interests
|
(237)
|
|
(138)
|
|
(423)
|
|
(252)
|
Net income attributable
to Charter shareholders
|
$
1,471
|
|
$
1,020
|
|
$
2,674
|
|
$
1,827
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS:
|
|
|
|
|
|
|
|
Basic
|
$
8.96
|
|
$
5.48
|
|
$
15.98
|
|
$
9.69
|
Diluted
|
$
8.80
|
|
$
5.29
|
|
$
15.66
|
|
$
9.37
|
Weighted average
common shares outstanding, basic
|
164,049,619
|
|
185,916,505
|
|
167,350,535
|
|
188,645,356
|
Weighted average
common shares outstanding, diluted
|
167,090,925
|
|
199,077,390
|
|
170,741,462
|
|
202,458,265
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(dollars in
millions)
|
|
|
June
30,
|
|
December
31,
|
|
2022
|
|
2021
|
ASSETS
|
(unaudited)
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
483
|
|
$
601
|
Accounts receivable,
net
|
2,779
|
|
2,579
|
Prepaid expenses and
other current assets
|
476
|
|
386
|
Total current
assets
|
3,738
|
|
3,566
|
|
|
|
|
INVESTMENT IN CABLE
PROPERTIES:
|
|
|
|
Property, plant and
equipment, net
|
34,472
|
|
34,310
|
Customer
relationships, net
|
3,373
|
|
4,060
|
Franchises
|
67,354
|
|
67,346
|
Goodwill
|
29,563
|
|
29,562
|
Total investment in
cable properties, net
|
134,762
|
|
135,278
|
|
|
|
|
OTHER NONCURRENT
ASSETS
|
4,758
|
|
3,647
|
|
|
|
|
Total
assets
|
$
143,258
|
|
$
142,491
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
9,862
|
|
$
9,461
|
Current portion of
long-term debt
|
1,533
|
|
2,997
|
Total current
liabilities
|
11,395
|
|
12,458
|
|
|
|
|
LONG-TERM
DEBT
|
94,468
|
|
88,564
|
DEFERRED INCOME
TAXES
|
19,123
|
|
19,096
|
OTHER LONG-TERM
LIABILITIES
|
4,759
|
|
4,217
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
Controlling
interest
|
9,879
|
|
14,050
|
Noncontrolling
interests
|
3,634
|
|
4,106
|
Total shareholders'
equity
|
13,513
|
|
18,156
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
143,258
|
|
$
142,491
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF
CASH FLOWS
(dollars in
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Consolidated net
income
|
$
1,708
|
|
$
1,158
|
|
$
3,097
|
|
$
2,079
|
Adjustments to
reconcile consolidated net income to net cash flows from operating
activities:
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
2,240
|
|
2,354
|
|
4,534
|
|
4,795
|
Stock
compensation expense
|
104
|
|
100
|
|
251
|
|
234
|
Noncash
interest income, net
|
(4)
|
|
(8)
|
|
(7)
|
|
(15)
|
Deferred income
taxes
|
77
|
|
215
|
|
115
|
|
371
|
Other,
net
|
(132)
|
|
129
|
|
(153)
|
|
124
|
Changes in operating
assets and liabilities, net of effects from acquisitions and
dispositions:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(249)
|
|
(188)
|
|
(200)
|
|
(44)
|
Prepaid
expenses and other assets
|
52
|
|
69
|
|
(133)
|
|
(113)
|
Accounts
payable, accrued liabilities and other
|
(62)
|
|
170
|
|
(123)
|
|
319
|
Net cash flows from
operating activities
|
3,734
|
|
3,999
|
|
7,381
|
|
7,750
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
(2,193)
|
|
(1,881)
|
|
(4,050)
|
|
(3,702)
|
Change in accrued
expenses related to capital expenditures
|
118
|
|
(50)
|
|
128
|
|
(125)
|
Other, net
|
(220)
|
|
(85)
|
|
(160)
|
|
(145)
|
Net cash flows from
investing activities
|
(2,295)
|
|
(2,016)
|
|
(4,082)
|
|
(3,972)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Borrowings of
long-term debt
|
9,918
|
|
5,669
|
|
16,631
|
|
10,958
|
Repayments of
long-term debt
|
(8,993)
|
|
(2,595)
|
|
(11,947)
|
|
(5,759)
|
Payments for debt
issuance costs
|
(20)
|
|
(36)
|
|
(57)
|
|
(58)
|
Purchase of treasury
stock
|
(3,687)
|
|
(3,516)
|
|
(7,020)
|
|
(7,168)
|
Proceeds from exercise
of stock options
|
4
|
|
17
|
|
5
|
|
26
|
Purchase of
noncontrolling interest
|
(578)
|
|
(583)
|
|
(994)
|
|
(1,090)
|
Distributions to
noncontrolling interest
|
(5)
|
|
(32)
|
|
(7)
|
|
(71)
|
Other, net
|
(26)
|
|
32
|
|
(28)
|
|
94
|
Net cash flows from
financing activities
|
(3,387)
|
|
(1,044)
|
|
(3,417)
|
|
(3,068)
|
|
|
|
|
|
|
|
|
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS
|
(1,948)
|
|
939
|
|
(118)
|
|
710
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
2,431
|
|
772
|
|
601
|
|
1,001
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
483
|
|
$
1,711
|
|
$
483
|
|
$
1,711
|
|
|
|
|
|
|
|
|
CASH PAID FOR
INTEREST
|
$
1,168
|
|
$
979
|
|
$
2,150
|
|
$
1,996
|
CASH PAID FOR
TAXES
|
$
441
|
|
$
49
|
|
$
470
|
|
$
69
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED SUMMARY OF
OPERATING STATISTICS
(in thousands,
except per customer and penetration data)
|
|
|
|
Approximate as
of
|
|
|
June 30, 2022
(a)
|
|
March 31, 2022
(a)
|
|
December 31, 2021
(a)
|
|
June 30, 2021
(a)
|
Footprint
(b)
|
|
|
|
|
|
|
|
|
Estimated
Passings
|
|
55,008
|
|
54,739
|
|
54,521
|
|
54,000
|
|
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
|
|
Residential
|
|
29,942
|
|
30,035
|
|
29,926
|
|
29,660
|
SMB
|
|
2,182
|
|
2,163
|
|
2,143
|
|
2,104
|
Total Customer
Relationships
|
|
32,124
|
|
32,198
|
|
32,069
|
|
31,764
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(93)
|
|
109
|
|
103
|
|
299
|
SMB
|
|
19
|
|
20
|
|
17
|
|
33
|
Total Customer
Relationships Quarterly Net Additions
|
|
(74)
|
|
129
|
|
120
|
|
332
|
|
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
58.4 %
|
|
58.8 %
|
|
58.8 %
|
|
58.8 %
|
|
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$ 116.00
|
|
$ 113.28
|
|
$
114.14
|
|
$ 112.85
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$ 165.66
|
|
$ 163.96
|
|
$
164.59
|
|
$ 166.28
|
|
|
|
|
|
|
|
|
|
Residential Customer
Relationships Penetration
|
|
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
47.8 %
|
|
47.2 %
|
|
46.7 %
|
|
45.7 %
|
Double Play
Penetration (g)
|
|
33.1 %
|
|
33.0 %
|
|
33.0 %
|
|
32.7 %
|
Triple Play
Penetration (g)
|
|
19.1 %
|
|
19.8 %
|
|
20.4 %
|
|
21.6 %
|
|
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
50.4 %
|
|
49.7 %
|
|
49.2 %
|
|
48.0 %
|
|
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
|
|
Residential
|
|
28,259
|
|
28,301
|
|
28,137
|
|
27,722
|
SMB
|
|
1,994
|
|
1,973
|
|
1,952
|
|
1,912
|
Total Internet
Customers
|
|
30,253
|
|
30,274
|
|
30,089
|
|
29,634
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(42)
|
|
164
|
|
172
|
|
365
|
SMB
|
|
21
|
|
21
|
|
18
|
|
35
|
Total Internet
Quarterly Net Additions
|
|
(21)
|
|
185
|
|
190
|
|
400
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
Residential
|
|
14,853
|
|
15,093
|
|
15,216
|
|
15,420
|
SMB
|
|
642
|
|
628
|
|
617
|
|
592
|
Total Video
Customers
|
|
15,495
|
|
15,721
|
|
15,833
|
|
16,012
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(240)
|
|
(123)
|
|
(71)
|
|
(63)
|
SMB
|
|
14
|
|
11
|
|
13
|
|
13
|
Total Video
Quarterly Net Additions
|
|
(226)
|
|
(112)
|
|
(58)
|
|
(50)
|
|
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
|
|
Residential
|
|
8,200
|
|
8,465
|
|
8,621
|
|
9,014
|
SMB
|
|
1,287
|
|
1,288
|
|
1,282
|
|
1,259
|
Total Voice
Customers
|
|
9,487
|
|
9,753
|
|
9,903
|
|
10,273
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(265)
|
|
(156)
|
|
(163)
|
|
(99)
|
SMB
|
|
(1)
|
|
6
|
|
9
|
|
21
|
Total Voice
Quarterly Net Additions
|
|
(266)
|
|
(150)
|
|
(154)
|
|
(78)
|
|
|
|
|
|
|
|
|
|
Mobile Lines
(h)
|
|
|
|
|
|
|
|
|
Residential
|
|
4,134
|
|
3,805
|
|
3,448
|
|
2,855
|
SMB
|
|
147
|
|
132
|
|
116
|
|
85
|
Total Mobile
Lines
|
|
4,281
|
|
3,937
|
|
3,564
|
|
2,940
|
|
|
|
|
|
|
|
|
|
Residential
|
|
329
|
|
357
|
|
363
|
|
250
|
SMB
|
|
15
|
|
16
|
|
17
|
|
15
|
Total Mobile
Lines Quarterly Net Additions
|
|
344
|
|
373
|
|
380
|
|
265
|
|
|
|
|
|
|
|
|
|
Enterprise
(i)
|
|
|
|
|
|
|
|
|
Enterprise Primary
Service Units ("PSUs")
|
|
277
|
|
274
|
|
272
|
|
265
|
Enterprise Quarterly
Net Additions
|
|
3
|
|
2
|
|
3
|
|
4
|
|
|
(a)
|
We calculate the aging
of customer accounts based on the monthly billing cycle for each
account. On that basis, at June 30, 2022, March 31,
2022, December 31, 2021 and June 30, 2021, customers included
approximately 154,500, 132,500, 128,300 and 162,700 customers,
respectively, whose accounts were over 60 days past due,
approximately 45,800, 29,000, 26,800 and 23,200 customers,
respectively, whose accounts were over 90 days past due and
approximately 97,200, 74,500, 43,200 and 30,400 customers,
respectively, whose accounts were over 120 days past due. Bad
debt expense associated with these past due accounts has been
reflected in our consolidated statements of operations. The
increase in past due accounts is predominately due to pre-existing
and incremental unsubsidized amounts of customers' bills for those
customers participating in government assistance programs.
These customers are downgraded to a fully subsidized Internet only
service. Included in the June 30, 2021 aging statistics are
approximately 73,500 residential customers that would have been
disconnected under our normal collection policies, but were not due
to certain state mandates in place.
|
|
|
(b)
|
Passings represent our
estimate of the number of units, such as single family homes,
apartment and condominium units and SMB and enterprise sites passed
by our cable distribution network in the areas where we offer the
service indicated. These estimates are based upon the
information available at this time and are updated for all periods
presented when new information becomes available.
|
|
|
(c)
|
Customer relationships
include the number of customers that receive one or more levels of
service, encompassing Internet, video and voice services, without
regard to which service(s) such customers receive. Customers
who reside in residential multiple dwelling units ("MDUs") and that
are billed under bulk contracts are counted based on the number of
billed units within each bulk MDU. Total customer
relationships exclude enterprise and mobile-only customer
relationships.
|
|
|
(d)
|
Penetration represents
residential and SMB customers as a percentage of estimated
passings. Penetration excludes mobile-only
customers.
|
|
|
(e)
|
Monthly residential
revenue per residential customer is calculated as total residential
quarterly revenue divided by three divided by average residential
customer relationships during the respective quarter and excludes
mobile revenue and customers.
|
|
|
(f)
|
Monthly SMB revenue per
SMB customer is calculated as total SMB quarterly revenue divided
by three divided by average SMB customer relationships during the
respective quarter and excludes mobile revenue and
customers.
|
|
|
(g)
|
Single play, double
play and triple play penetration represents the number of
residential single play, double play and triple play cable
customers, respectively, as a percentage of residential customer
relationships, excluding mobile.
|
|
|
(h)
|
Mobile lines include
phones and tablets which require one of our standard rate plans
(e.g., "Unlimited" or "By the Gig"). Mobile lines exclude
wearables and other devices that do not require standard phone rate
plans.
|
|
|
(i)
|
Enterprise PSUs
represents the aggregate number of fiber service offerings counting
each separate service offering at each customer location as an
individual PSU.
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED
CAPITAL EXPENDITURES
(dollars in
millions)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Customer premise
equipment (a)
|
$
560
|
|
$
494
|
|
$
1,029
|
|
$
983
|
Scalable infrastructure
(b)
|
389
|
|
437
|
|
760
|
|
848
|
Line extensions
(c)
|
694
|
|
400
|
|
1,236
|
|
799
|
Upgrade/rebuild
(d)
|
181
|
|
161
|
|
327
|
|
306
|
Support capital
(e)
|
369
|
|
389
|
|
698
|
|
766
|
Total
capital expenditures
|
$
2,193
|
|
$
1,881
|
|
$
4,050
|
|
$
3,702
|
|
|
|
|
|
|
|
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
Commercial
services
|
$
376
|
|
$
397
|
|
$
741
|
|
$
730
|
Mobile
|
$
95
|
|
$
124
|
|
$
169
|
|
$
236
|
Rural construction
initiative (f)
|
$
357
|
|
$
—
|
|
$
589
|
|
$
—
|
|
|
(a)
|
Customer premise
equipment includes costs incurred at the customer residence to
secure new customers and revenue generating units, including
customer installation costs and customer premise equipment (e.g.,
digital receivers and cable modems).
|
(b)
|
Scalable infrastructure
includes costs, not related to customer premise equipment, to
secure growth of new customers and revenue generating units, or
provide service enhancements (e.g., headend equipment).
|
(c)
|
Line extensions include
network costs associated with entering new service areas (e.g.,
fiber/coaxial cable, amplifiers, electronic equipment, make-ready
and design engineering).
|
(d)
|
Upgrade/rebuild
includes costs to modify or replace existing fiber/coaxial cable
networks, including betterments.
|
(e)
|
Support capital
includes costs associated with the replacement or enhancement of
non-network assets due to technological and physical obsolescence
(e.g., non-network equipment, land, buildings and
vehicles).
|
(f)
|
The rural construction
initiative subcategory includes expenditures associated with our
Rural Construction Initiative (for which separate reporting was
initiated in 2022), excluding customer premise equipment and
installation.
|
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SOURCE Charter Communications, Inc.