STAMFORD, Conn., Oct. 28,
2022 /PRNewswire/ -- Charter Communications, Inc.
(along with its subsidiaries, the "Company" or "Charter") today
reported financial and operating results for the three and nine
months ended September 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)
- Third quarter total residential and small and medium business
("SMB") Internet customers increased by 75,000. As of September 30, 2022, Charter served a total of
30.3 million residential and SMB Internet customers.
- Third quarter total residential and SMB mobile lines increased
by 396,000. As of September 30, 2022,
Charter served a total of 4.7 million mobile lines.
- As of September 30, 2022, Charter
had a total of 32.1 million residential and SMB customer
relationships, which excludes mobile-only relationships.
- Third quarter revenue of $13.6
billion grew by 3.1% year-over-year, driven by mobile
revenue growth of 40.2%, advertising sales revenue growth of 22.9%
and residential revenue growth of 0.7%.
- Net income attributable to Charter shareholders totaled
$1.2 billion in the third
quarter.
- Third quarter Adjusted EBITDA1 of $5.4 billion grew by 2.4% year-over-year.
- Third quarter capital expenditures totaled $2.4 billion and included $525 million of rural construction initiative
capital expenditures and $96 million
of mobile-related capital expenditures.
- Third quarter net cash flows from operating activities totaled
$3.8 billion, compared to
$4.3 billion in the prior year
quarter. The year-over-year decline was primarily due to higher
cash taxes and the payment of litigation settlements, partly offset
by higher Adjusted EBITDA.
- Third quarter free cash flow1 of $1.5 billion decreased by 39.1% year-over-year,
primarily due to capital expenditures associated with Charter's
rural construction initiative and higher cash taxes.
- During the third quarter, Charter purchased 5.8 million shares
of Charter Class A common stock and Charter Communications
Holdings, LLC ("Charter Holdings") common units for approximately
$2.6 billion.
"Charter now delivers the nation's first converged broadband,
WiFi and mobile experience at prices that generate significant
savings for consumers," said Tom
Rutledge, Chairman and CEO of Charter. "And as I look at our
existing advanced offerings, and our future product capabilities,
we are well positioned to grow our business at very attractive
rates for many years to come."
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
|
|
|
|
|
September 30,
2022 (a)
|
|
September 30,
2021 (a)
|
|
Y/Y
Change
|
Footprint
(b)
|
|
|
|
|
|
|
Estimated
Passings
|
|
55,288
|
|
54,268
|
|
1.9 %
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
Residential
|
|
29,946
|
|
29,823
|
|
0.4 %
|
SMB
|
|
2,195
|
|
2,126
|
|
3.3 %
|
Total Customer Relationships
|
|
32,141
|
|
31,949
|
|
0.6 %
|
|
|
|
|
|
|
|
Residential
|
|
4
|
|
163
|
|
(159)
|
SMB
|
|
13
|
|
22
|
|
(9)
|
Total Customer Relationships Quarterly Net
Additions
|
|
17
|
|
185
|
|
(168)
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
58.1 %
|
|
58.9 %
|
|
(0.8) ppts
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
115.16
|
|
$
115.15
|
|
0.0 %
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
164.89
|
|
$
167.29
|
|
(1.4) %
|
|
|
|
|
|
|
|
Residential Customer
Relationships Penetration
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
48.5 %
|
|
46.4 %
|
|
2.1 ppts
|
Double Play
Penetration (g)
|
|
33.1 %
|
|
32.8 %
|
|
0.3 ppts
|
Triple Play
Penetration (g)
|
|
18.4 %
|
|
20.9 %
|
|
(2.5) ppts
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
51.1 %
|
|
48.7 %
|
|
2.4 ppts
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
Residential
|
|
28,320
|
|
27,965
|
|
1.3 %
|
SMB
|
|
2,008
|
|
1,934
|
|
3.8 %
|
Total Internet Customers
|
|
30,328
|
|
29,899
|
|
1.4 %
|
|
|
|
|
|
|
|
Residential
|
|
61
|
|
243
|
|
(182)
|
SMB
|
|
14
|
|
22
|
|
(8)
|
Total Internet Quarterly Net Additions
|
|
75
|
|
265
|
|
(190)
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
Residential
|
|
14,642
|
|
15,287
|
|
(4.2) %
|
SMB
|
|
649
|
|
604
|
|
7.5 %
|
Total Video Customers
|
|
15,291
|
|
15,891
|
|
(3.8) %
|
|
|
|
|
|
|
|
Residential
|
|
(211)
|
|
(133)
|
|
(78)
|
SMB
|
|
7
|
|
12
|
|
(5)
|
Total Video Quarterly Net Additions
|
|
(204)
|
|
(121)
|
|
(83)
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
Residential
|
|
7,929
|
|
8,784
|
|
(9.7) %
|
SMB
|
|
1,287
|
|
1,273
|
|
1.1 %
|
Total Voice Customers
|
|
9,216
|
|
10,057
|
|
(8.4) %
|
|
|
|
|
|
|
|
Residential
|
|
(271)
|
|
(230)
|
|
(41)
|
SMB
|
|
—
|
|
14
|
|
(14)
|
Total Voice Quarterly Net Additions
|
|
(271)
|
|
(216)
|
|
(55)
|
|
|
|
|
|
|
|
Mobile Lines
(h)
|
|
|
|
|
|
|
Residential
|
|
4,516
|
|
3,085
|
|
46.4 %
|
SMB
|
|
161
|
|
99
|
|
63.6 %
|
Total Mobile Lines
|
|
4,677
|
|
3,184
|
|
46.9 %
|
|
|
|
|
|
|
|
Residential
|
|
382
|
|
230
|
|
152
|
SMB
|
|
14
|
|
14
|
|
—
|
Total Mobile Lines Quarterly Net Additions
|
|
396
|
|
244
|
|
152
|
|
|
|
|
|
|
|
Enterprise
(i)
|
|
|
|
|
|
|
Enterprise Primary
Service Units ("PSUs")
|
|
282
|
|
269
|
|
4.9 %
|
Enterprise Quarterly
Net Additions
|
|
5
|
|
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 September 30, 2022, Charter
had 29.9 million residential customer relationships, with
year-over-year growth of 0.4%.
Third quarter residential Internet customers increased
by 61,000, compared to an increase of 243,000 customers during
the third quarter of 2021. Spectrum
Internet® and Spectrum WiFi deliver the
fastest speeds in the nation.1 Charter offers
Spectrum Internet products with speeds up to 1 Gbps
across its entire footprint. Charter's Advanced WiFi, a managed
WiFi service that provides customers an optimized home network
while providing greater control of their connected devices with
enhanced security and privacy, is available to nearly all
Spectrum Internet customers. In October, Charter introduced
Spectrum One, which brings together Spectrum
Internet, Advanced WiFi and Unlimited Spectrum
MobileTM, to offer consumers faster, more
reliable and secure online connections on their favorite devices at
home and on the go in a high-value package.
Residential video customers decreased by 211,000 in the third
quarter of 2022, compared to a decline of 133,000 in the third
quarter of 2021, partly driven by downgrades following an April
pass through of higher programming expense. As of
September 30, 2022, Charter had 14.6 million residential
video customers.
During the third quarter of 2022, residential wireline voice
customers declined by 271,000, compared to a decline of 230,000 in
the third quarter of 2021. As of September 30, 2022, Charter
had 7.9 million residential wireline voice customers.
Third quarter 2022 residential revenue per residential
customer (excluding mobile) totaled $115.16, unchanged year-over-year, 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 13,000 in the third quarter
of 2022, while third quarter 2021 SMB customer relationships grew
by 22,000. Enterprise PSUs grew by 5,000 in the third quarter of
2022 versus 4,000 added in the third quarter of 2021.
During the third quarter of 2022, Charter added 396,000 mobile
lines, compared to growth of 244,000 during the third quarter of
2021. Spectrum Mobile is available to all new and existing
Spectrum Internet customers. Spectrum
Mobile customers can choose "Unlimited" or "By the Gig"
data plans. Unlimited pricing starts at $29.99/month per line, and By the Gig lines are
available for $14/GB. All Spectrum
Mobile plans offer the fastest overall speeds,2
include 5G access and taxes and fees and do not require contracts.
Spectrum One and Spectrum Mobile are central to
Charter's converged network strategy to provide consumers a
differentiated connectivity experience with highly competitive,
simple data plans and pricing.
1.
|
Based on analysis by
Ookla® of Speedtest Intelligence® data U.S.
median fixed download speeds for Q3 2022. Ookla trademarks used
under license and reprinted with permission.
|
2.
|
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.
|
Third Quarter Financial
Results
(in
millions)
|
|
Three Months Ended
September 30,
|
|
2022
|
|
2021
|
|
%
Change
|
Revenues:
|
|
|
|
|
|
Internet
|
$ 5,571
|
|
$ 5,363
|
|
3.9 %
|
Video
|
4,379
|
|
4,502
|
|
(2.7) %
|
Voice
|
391
|
|
409
|
|
(4.6) %
|
Residential
revenue
|
10,341
|
|
10,274
|
|
0.7 %
|
Small and medium
business
|
1,082
|
|
1,062
|
|
1.9 %
|
Enterprise
|
673
|
|
656
|
|
2.6 %
|
Commercial
revenue
|
1,755
|
|
1,718
|
|
2.2 %
|
Advertising
sales
|
481
|
|
391
|
|
22.9 %
|
Mobile
|
750
|
|
535
|
|
40.2 %
|
Other
|
223
|
|
228
|
|
(2.1) %
|
Total
Revenues
|
$
13,550
|
|
$
13,146
|
|
3.1 %
|
|
|
|
|
|
|
Net income attributable
to Charter shareholders
|
$ 1,185
|
|
$ 1,217
|
|
(2.5) %
|
Net income attributable
to Charter shareholders margin
|
8.8 %
|
|
9.3 %
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA1
|
$ 5,412
|
|
$ 5,286
|
|
2.4 %
|
Adjusted EBITDA
margin
|
39.9 %
|
|
40.2 %
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$ 2,406
|
|
$ 1,861
|
|
29.3 %
|
% Total
Revenues
|
17.8 %
|
|
14.2 %
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$ 3,757
|
|
$ 4,263
|
|
(11.9) %
|
Free cash
flow1
|
$ 1,507
|
|
$ 2,476
|
|
(39.1) %
|
|
|
1.
|
See page 1 of the
addendum for a GAAP reconciliation of Adjusted EBITDA and free cash
flow.
|
Revenues
Third quarter revenue increased by 3.1% year-over-year to
$13.6 billion, driven primarily by
growth in mobile, advertising sales and residential revenues.
Residential revenue totaled $10.3
billion in the third quarter, an increase of 0.7%
year-over-year.
Internet revenue grew by 3.9% 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 $4.4 billion
in the third quarter, a decrease of 2.7% compared to the prior year
period, driven 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, partly offset by promotional rate
step-ups, video rate adjustments that pass through programmer rate
increases and higher bundled revenue allocation.
Voice revenue totaled $391
million in the third quarter, a decrease of 4.6% compared to
the third quarter of 2021, driven by a decline in wireline voice
customers over the last twelve months, partly offset by voice rate
adjustments.
Commercial revenue increased by 2.2% year-over-year to
$1.8 billion, driven by SMB and
enterprise revenue growth of 1.9% and 2.6% year-over-year,
respectively. Third quarter 2022 SMB revenue growth was driven by
customer relationship growth. Excluding a one-time benefit in the
third quarter of 2021, enterprise revenue grew by 5.2%
year-over-year, mostly reflecting PSU growth. Enterprise revenue
excluding wholesale increased by 9.0% year-over-year.
Third quarter advertising sales revenue of $481 million increased by 22.9% compared to the
year-ago quarter, primarily driven by higher political revenue.
Excluding political revenue in both periods, advertising sales
revenue decreased by 0.2% year-over-year, due to lower national and
local advertising revenue, partly offset by higher advanced
advertising revenue.
Third quarter mobile revenue totaled $750 million, an increase of 40.2%
year-over-year, driven by mobile line growth.
Operating Costs and Expenses
Third quarter programming costs decreased by $112 million, or 3.8% as compared to the third
quarter of 2021, reflecting fewer video customers and a higher mix
of lower cost packages within Charter's video customer base, partly
offset by contractual programming rate increases and renewals.
Regulatory, connectivity and produced content expenses decreased
by $47 million, or 7.4%
year-over-year, primarily driven by lower video CPE sold to
customers.
Costs to service customers increased by $83 million, or 4.4% year-over-year. The
year-over-year increase in costs to service customers was primarily
driven by higher bad debt and higher fuel and freight costs, partly
offset by productivity improvements. Costs to service customers
excluding bad debt increased by 3.0% year-over-year.
Marketing expenses increased by $73
million, or 9.3% year-over-year, due to higher staffing
levels and wages as Charter focuses on providing better service to
new and existing customers.
Third quarter mobile costs totaled $846 million, an increase of 39.4%
year-over-year, and were comprised of device costs, customer
acquisition costs and service and operating costs.
Other expenses increased by $42
million, or 4.4% as compared to the third quarter of
2021.
Net Income Attributable to Charter Shareholders
Net income attributable to Charter shareholders totaled
$1.2 billion in the third quarters of
2022 and 2021, as higher Adjusted EBITDA was offset by higher
interest expense, net.
Net income per basic common share attributable to Charter
shareholders totaled $7.51 in the
third quarter of 2022 compared to $6.69 during the same period last year. The
increase was primarily the result of a 13.2% decrease in basic
weighted average common shares outstanding versus the prior year
period, in addition to the factors described above.
Adjusted EBITDA
Third quarter Adjusted EBITDA of $5.4 billion grew by 2.4% year-over-year,
reflecting growth in revenue and operating expenses of 3.1% and
3.5%, respectively.
Capital Expenditures
Property, plant and equipment expenditures totaled $2.4 billion in the third quarter of 2022,
compared to $1.9 billion during the
third quarter of 2021, primarily driven by an increase in rural
construction initiative spend. Third quarter capital expenditures
included $525 million of rural
construction initiative spend, most of which was included in line
extensions. Third quarter capital expenditures also included
$96 million of mobile costs, most of
which related to information technology systems and were included
in support capital and scalable infrastructure. Cable capital
expenditures, excluding capital expenditures associated with the
rural construction initiative, increased to $1.8 billion in the third quarter of 2022,
compared to $1.7 billion in the prior
year quarter, primarily due to higher customer premise equipment
and scalable infrastructure spending.
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 third quarter of 2022, net cash flows from operating
activities totaled $3.8 billion,
compared to $4.3 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 and the
payment of litigation settlements, partly offset by higher Adjusted
EBITDA.
Free cash flow in the third quarter of 2022 totaled $1.5 billion, compared to $2.5 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 September 30, 2022, total principal amount of debt
was $96.8 billion and Charter's
credit facilities provided approximately $4.6 billion of additional liquidity in excess of
Charter's $480 million cash
position.
In August 2022, CCO Holdings, LLC
and CCO Holdings Capital Corp. jointly issued $1.5 billion of 6.375% senior unsecured
notes due September 2029 at par. The
net proceeds were used for general corporate purposes, including to
fund buybacks of Charter Class A common stock and Charter Holdings
common units, to repay certain indebtedness and to pay related fees
and expenses.
Share Repurchases
During the three months ended September 30, 2022, Charter
purchased 5.8 million shares of Charter Class A common stock and
Charter Holdings common units for approximately $2.6 billion. During the nine months ended
September 30, 2022, Charter purchased 20.2 million shares of
Charter Class A common stock and Charter Holdings common units, or
10.1% of fully diluted shares outstanding (including as-exchanged
Charter Holdings common units) as of December 31, 2021, for approximately $10.4 billion.
Webcast
Charter will host a webcast on Friday, October 28, 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
nine months ended September 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 $342
million and $1.0 billion for
the three and nine months ended September 30, 2022,
respectively, and $337 million and
$979 million for the three and nine
months ended September 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 and sports
programming to its customers through Spectrum Networks. 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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net income attributable
to Charter shareholders
|
$
1,185
|
|
$
1,217
|
|
$
3,859
|
|
$
3,044
|
Plus: Net income
attributable to noncontrolling interest
|
182
|
|
190
|
|
605
|
|
442
|
Interest expense,
net
|
1,160
|
|
1,016
|
|
3,329
|
|
3,003
|
Income tax
expense
|
360
|
|
347
|
|
1,194
|
|
844
|
Depreciation and
amortization
|
2,177
|
|
2,270
|
|
6,711
|
|
7,065
|
Stock compensation
expense
|
109
|
|
98
|
|
360
|
|
332
|
Other expenses,
net
|
239
|
|
148
|
|
76
|
|
521
|
Adjusted
EBITDA
|
$
5,412
|
|
$
5,286
|
|
$
16,134
|
|
$
15,251
|
|
|
|
|
|
|
|
|
Net cash flows from
operating activities
|
$
3,757
|
|
$
4,263
|
|
$
11,138
|
|
$
12,013
|
Less: Purchases
of property, plant and equipment
|
(2,406)
|
|
(1,861)
|
|
(6,456)
|
|
(5,563)
|
Change in accrued
expenses related to capital expenditures
|
156
|
|
74
|
|
284
|
|
(51)
|
Free cash
flow
|
$
1,507
|
|
$
2,476
|
|
$
4,966
|
|
$
6,399
|
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
2022
|
|
2021
|
|
%
Change
|
|
2022
|
|
2021
|
|
%
Change
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
Internet
|
$
5,571
|
|
$
5,363
|
|
3.9 %
|
|
$ 16,585
|
|
$ 15,670
|
|
5.8 %
|
Video
|
4,379
|
|
4,502
|
|
(2.7) %
|
|
13,209
|
|
13,224
|
|
(0.1) %
|
Voice
|
391
|
|
409
|
|
(4.6) %
|
|
1,180
|
|
1,202
|
|
(1.9) %
|
Residential revenue
|
10,341
|
|
10,274
|
|
0.7 %
|
|
30,974
|
|
30,096
|
|
2.9 %
|
Small and medium
business
|
1,082
|
|
1,062
|
|
1.9 %
|
|
3,221
|
|
3,116
|
|
3.4 %
|
Enterprise
|
673
|
|
656
|
|
2.6 %
|
|
2,003
|
|
1,930
|
|
3.8 %
|
Commercial revenue
|
1,755
|
|
1,718
|
|
2.2 %
|
|
5,224
|
|
5,046
|
|
3.5 %
|
Advertising
sales
|
481
|
|
391
|
|
22.9 %
|
|
1,324
|
|
1,146
|
|
15.6 %
|
Mobile
|
750
|
|
535
|
|
40.2 %
|
|
2,166
|
|
1,546
|
|
40.1 %
|
Other
|
223
|
|
228
|
|
(2.1) %
|
|
660
|
|
636
|
|
3.7 %
|
Total Revenues
|
13,550
|
|
13,146
|
|
3.1 %
|
|
40,348
|
|
38,470
|
|
4.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Programming
|
2,871
|
|
2,983
|
|
(3.8) %
|
|
8,820
|
|
8,949
|
|
(1.4) %
|
Regulatory,
connectivity and produced content
|
587
|
|
634
|
|
(7.4) %
|
|
1,742
|
|
1,902
|
|
(8.4) %
|
Costs to service
customers
|
1,982
|
|
1,899
|
|
4.4 %
|
|
5,801
|
|
5,530
|
|
4.9 %
|
Marketing
|
861
|
|
788
|
|
9.3 %
|
|
2,493
|
|
2,280
|
|
9.4 %
|
Mobile
|
846
|
|
607
|
|
39.4 %
|
|
2,403
|
|
1,765
|
|
36.1 %
|
Other expense
(a)
|
991
|
|
949
|
|
4.4 %
|
|
2,955
|
|
2,793
|
|
5.8 %
|
Total operating costs and expenses (a)
|
8,138
|
|
7,860
|
|
3.5 %
|
|
24,214
|
|
23,219
|
|
4.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
5,412
|
|
$
5,286
|
|
2.4 %
|
|
$ 16,134
|
|
$ 15,251
|
|
5.8 %
|
|
|
(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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
REVENUES
|
$
13,550
|
|
$
13,146
|
|
$
40,348
|
|
$
38,470
|
|
|
|
|
|
|
|
|
COSTS AND
EXPENSES:
|
|
|
|
|
|
|
|
Operating costs and
expenses (exclusive of items shown separately below)
|
8,247
|
|
7,958
|
|
24,574
|
|
23,551
|
Depreciation and
amortization
|
2,177
|
|
2,270
|
|
6,711
|
|
7,065
|
Other operating
(income) expenses, net
|
202
|
|
(9)
|
|
141
|
|
284
|
|
10,626
|
|
10,219
|
|
31,426
|
|
30,900
|
Income from
operations
|
2,924
|
|
2,927
|
|
8,922
|
|
7,570
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSES):
|
|
|
|
|
|
|
|
Interest expense,
net
|
(1,160)
|
|
(1,016)
|
|
(3,329)
|
|
(3,003)
|
Other income
(expense), net
|
(37)
|
|
(157)
|
|
65
|
|
(237)
|
|
(1,197)
|
|
(1,173)
|
|
(3,264)
|
|
(3,240)
|
Income before income
taxes
|
1,727
|
|
1,754
|
|
5,658
|
|
4,330
|
Income tax
expense
|
(360)
|
|
(347)
|
|
(1,194)
|
|
(844)
|
Consolidated net
income
|
1,367
|
|
1,407
|
|
4,464
|
|
3,486
|
Less: Net income
attributable to noncontrolling interests
|
(182)
|
|
(190)
|
|
(605)
|
|
(442)
|
Net income attributable
to Charter shareholders
|
$
1,185
|
|
$
1,217
|
|
$
3,859
|
|
$
3,044
|
|
|
|
|
|
|
|
|
EARNINGS PER COMMON
SHARE ATTRIBUTABLE TO CHARTER
SHAREHOLDERS:
|
|
|
|
|
|
|
|
Basic
|
$
7.51
|
|
$
6.69
|
|
$
23.51
|
|
$
16.33
|
Diluted
|
$
7.38
|
|
$
6.50
|
|
$
23.06
|
|
$
15.78
|
Weighted average
common shares outstanding, basic
|
157,971,109
|
|
181,925,180
|
|
164,189,703
|
|
186,380,681
|
Weighted average
common shares outstanding, diluted
|
160,638,186
|
|
187,166,071
|
|
167,351,777
|
|
197,316,667
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(dollars in
millions)
|
|
|
September
30,
|
|
December
31,
|
|
2022
|
|
2021
|
ASSETS
|
(unaudited)
|
|
|
CURRENT
ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
480
|
|
$
601
|
Accounts receivable,
net
|
2,841
|
|
2,579
|
Prepaid expenses and
other current assets
|
433
|
|
386
|
Total current
assets
|
3,754
|
|
3,566
|
|
|
|
|
INVESTMENT IN CABLE
PROPERTIES:
|
|
|
|
Property, plant and
equipment, net
|
35,005
|
|
34,310
|
Customer
relationships, net
|
3,073
|
|
4,060
|
Franchises
|
67,363
|
|
67,346
|
Goodwill
|
29,563
|
|
29,562
|
Total investment in
cable properties, net
|
135,004
|
|
135,278
|
|
|
|
|
OTHER NONCURRENT
ASSETS
|
4,911
|
|
3,647
|
|
|
|
|
Total
assets
|
$
143,669
|
|
$
142,491
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
Accounts payable and
accrued liabilities
|
$
10,073
|
|
$
9,461
|
Current portion of
long-term debt
|
1,522
|
|
2,997
|
Total current
liabilities
|
11,595
|
|
12,458
|
|
|
|
|
LONG-TERM
DEBT
|
95,510
|
|
88,564
|
DEFERRED INCOME
TAXES
|
19,153
|
|
19,096
|
OTHER LONG-TERM
LIABILITIES
|
5,061
|
|
4,217
|
|
|
|
|
SHAREHOLDERS'
EQUITY:
|
|
|
|
Controlling
interest
|
8,889
|
|
14,050
|
Noncontrolling
interests
|
3,461
|
|
4,106
|
Total shareholders'
equity
|
12,350
|
|
18,156
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
143,669
|
|
$
142,491
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED CONSOLIDATED STATEMENTS OF
CASH FLOWS
|
(dollars in
millions)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Consolidated net
income
|
$
1,367
|
|
$
1,407
|
|
$
4,464
|
|
$
3,486
|
Adjustments to
reconcile consolidated net income to net cash flows from
operating activities:
|
|
|
|
|
|
|
|
Depreciation and amortization
|
2,177
|
|
2,270
|
|
6,711
|
|
7,065
|
Stock compensation expense
|
109
|
|
98
|
|
360
|
|
332
|
Noncash interest income, net
|
(5)
|
|
(5)
|
|
(12)
|
|
(20)
|
Deferred income taxes
|
50
|
|
297
|
|
165
|
|
668
|
Other, net
|
40
|
|
155
|
|
(113)
|
|
279
|
Changes in operating
assets and liabilities, net of effects from acquisitions
and dispositions:
|
|
|
|
|
|
|
|
Accounts receivable
|
(62)
|
|
(62)
|
|
(262)
|
|
(106)
|
Prepaid expenses and other assets
|
37
|
|
(14)
|
|
(96)
|
|
(127)
|
Accounts payable, accrued liabilities and other
|
44
|
|
117
|
|
(79)
|
|
436
|
Net cash flows from operating activities
|
3,757
|
|
4,263
|
|
11,138
|
|
12,013
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
(2,406)
|
|
(1,861)
|
|
(6,456)
|
|
(5,563)
|
Change in accrued expenses related to capital
expenditures
|
156
|
|
74
|
|
284
|
|
(51)
|
Other, net
|
(14)
|
|
(3)
|
|
(174)
|
|
(148)
|
Net cash flows from investing activities
|
(2,264)
|
|
(1,790)
|
|
(6,346)
|
|
(5,762)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Borrowings of long-term debt
|
4,897
|
|
4,305
|
|
21,528
|
|
15,263
|
Repayments of long-term debt
|
(3,712)
|
|
(3,892)
|
|
(15,659)
|
|
(9,651)
|
Payments for debt issuance costs
|
(14)
|
|
(18)
|
|
(71)
|
|
(76)
|
Purchase of treasury stock
|
(2,225)
|
|
(3,666)
|
|
(9,245)
|
|
(10,834)
|
Proceeds from exercise of stock options
|
—
|
|
17
|
|
5
|
|
43
|
Purchase of noncontrolling interest
|
(385)
|
|
(410)
|
|
(1,379)
|
|
(1,500)
|
Distributions to noncontrolling interest
|
(49)
|
|
—
|
|
(56)
|
|
(71)
|
Other, net
|
(8)
|
|
(54)
|
|
(36)
|
|
40
|
Net cash flows from financing activities
|
(1,496)
|
|
(3,718)
|
|
(4,913)
|
|
(6,786)
|
|
|
|
|
|
|
|
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(3)
|
|
(1,245)
|
|
(121)
|
|
(535)
|
CASH AND CASH
EQUIVALENTS, beginning of period
|
483
|
|
1,711
|
|
601
|
|
1,001
|
CASH AND CASH
EQUIVALENTS, end of period
|
$
480
|
|
$
466
|
|
$
480
|
|
$
466
|
|
|
|
|
|
|
|
|
CASH PAID FOR
INTEREST
|
$
1,101
|
|
$
1,042
|
|
$
3,251
|
|
$
3,038
|
CASH PAID FOR
TAXES
|
$
412
|
|
$
30
|
|
$
882
|
|
$
99
|
CHARTER
COMMUNICATIONS, INC. AND SUBSIDIARIES
|
UNAUDITED SUMMARY OF
OPERATING STATISTICS
|
(in thousands,
except per customer and penetration data)
|
|
|
|
Approximate as
of
|
|
|
September 30,
2022 (a)
|
|
June 30,
2022 (a)
|
|
December 31,
2021 (a)
|
|
September 30,
2021 (a)
|
Footprint
(b)
|
|
|
|
|
|
|
|
|
Estimated
Passings
|
|
55,288
|
|
55,008
|
|
54,521
|
|
54,268
|
|
|
|
|
|
|
|
|
|
Customer
Relationships (c)
|
|
|
|
|
|
|
|
|
Residential
|
|
29,946
|
|
29,942
|
|
29,926
|
|
29,823
|
SMB
|
|
2,195
|
|
2,182
|
|
2,143
|
|
2,126
|
Total Customer Relationships
|
|
32,141
|
|
32,124
|
|
32,069
|
|
31,949
|
|
|
|
|
|
|
|
|
|
Residential
|
|
4
|
|
(93)
|
|
103
|
|
163
|
SMB
|
|
13
|
|
19
|
|
17
|
|
22
|
Total Customer Relationships Quarterly Net
Additions
|
|
17
|
|
(74)
|
|
120
|
|
185
|
|
|
|
|
|
|
|
|
|
Total Customer
Relationship Penetration of Estimated Passings (d)
|
|
58.1 %
|
|
58.4 %
|
|
58.8 %
|
|
58.9 %
|
|
|
|
|
|
|
|
|
|
Monthly Residential
Revenue per Residential Customer (e)
|
|
$
115.16
|
|
$ 116.00
|
|
$
114.14
|
|
$
115.15
|
Monthly SMB Revenue
per SMB Customer (f)
|
|
$
164.89
|
|
$ 165.66
|
|
$
164.59
|
|
$
167.29
|
|
|
|
|
|
|
|
|
|
Residential Customer
Relationships Penetration
|
|
|
|
|
|
|
|
|
Single Play
Penetration (g)
|
|
48.5 %
|
|
47.8 %
|
|
46.7 %
|
|
46.4 %
|
Double Play
Penetration (g)
|
|
33.1 %
|
|
33.1 %
|
|
33.0 %
|
|
32.8 %
|
Triple Play
Penetration (g)
|
|
18.4 %
|
|
19.1 %
|
|
20.4 %
|
|
20.9 %
|
|
|
|
|
|
|
|
|
|
% Residential
Non-Video Customer Relationships
|
|
51.1 %
|
|
50.4 %
|
|
49.2 %
|
|
48.7 %
|
|
|
|
|
|
|
|
|
|
Internet
|
|
|
|
|
|
|
|
|
Residential
|
|
28,320
|
|
28,259
|
|
28,137
|
|
27,965
|
SMB
|
|
2,008
|
|
1,994
|
|
1,952
|
|
1,934
|
Total Internet Customers
|
|
30,328
|
|
30,253
|
|
30,089
|
|
29,899
|
|
|
|
|
|
|
|
|
|
Residential
|
|
61
|
|
(42)
|
|
172
|
|
243
|
SMB
|
|
14
|
|
21
|
|
18
|
|
22
|
Total Internet Quarterly Net Additions
|
|
75
|
|
(21)
|
|
190
|
|
265
|
|
|
|
|
|
|
|
|
|
Video
|
|
|
|
|
|
|
|
|
Residential
|
|
14,642
|
|
14,853
|
|
15,216
|
|
15,287
|
SMB
|
|
649
|
|
642
|
|
617
|
|
604
|
Total Video Customers
|
|
15,291
|
|
15,495
|
|
15,833
|
|
15,891
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(211)
|
|
(240)
|
|
(71)
|
|
(133)
|
SMB
|
|
7
|
|
14
|
|
13
|
|
12
|
Total Video Quarterly Net Additions
|
|
(204)
|
|
(226)
|
|
(58)
|
|
(121)
|
|
|
|
|
|
|
|
|
|
Voice
|
|
|
|
|
|
|
|
|
Residential
|
|
7,929
|
|
8,200
|
|
8,621
|
|
8,784
|
SMB
|
|
1,287
|
|
1,287
|
|
1,282
|
|
1,273
|
Total Voice Customers
|
|
9,216
|
|
9,487
|
|
9,903
|
|
10,057
|
|
|
|
|
|
|
|
|
|
Residential
|
|
(271)
|
|
(265)
|
|
(163)
|
|
(230)
|
SMB
|
|
—
|
|
(1)
|
|
9
|
|
14
|
Total Voice Quarterly Net Additions
|
|
(271)
|
|
(266)
|
|
(154)
|
|
(216)
|
|
|
|
|
|
|
|
|
|
Mobile Lines
(h)
|
|
|
|
|
|
|
|
|
Residential
|
|
4,516
|
|
4,134
|
|
3,448
|
|
3,085
|
SMB
|
|
161
|
|
147
|
|
116
|
|
99
|
Total Mobile Lines
|
|
4,677
|
|
4,281
|
|
3,564
|
|
3,184
|
|
|
|
|
|
|
|
|
|
Residential
|
|
382
|
|
329
|
|
363
|
|
230
|
SMB
|
|
14
|
|
15
|
|
17
|
|
14
|
Total Mobile Lines Quarterly Net Additions
|
|
396
|
|
344
|
|
380
|
|
244
|
|
|
|
|
|
|
|
|
|
Enterprise
(i)
|
|
|
|
|
|
|
|
|
Enterprise Primary
Service Units ("PSUs")
|
|
282
|
|
277
|
|
272
|
|
269
|
Enterprise Quarterly
Net Additions
|
|
5
|
|
3
|
|
3
|
|
4
|
|
|
(a)
|
We calculate the aging
of customer accounts based on the monthly billing cycle for each
account. On that basis, at September 30, 2022, June 30,
2022, December 31, 2021 and September 30, 2021, customers
included approximately 151,700, 154,500, 128,300 and 119,200
customers, respectively, whose accounts were over 60 days past due,
approximately 55,500, 45,800, 26,800 and 21,100 customers,
respectively, whose accounts were over 90 days past due and
approximately 149,300, 97,200, 43,200 and 31,800 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,
including video services. These customers are downgraded to a
fully subsidized Internet-only service.
|
|
|
(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
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Customer premise
equipment (a)
|
$
577
|
|
$
513
|
|
$
1,606
|
|
$
1,496
|
Scalable infrastructure
(b)
|
418
|
|
375
|
|
1,178
|
|
1,223
|
Line extensions
(c)
|
826
|
|
392
|
|
2,062
|
|
1,191
|
Upgrade/rebuild
(d)
|
208
|
|
178
|
|
535
|
|
484
|
Support capital
(e)
|
377
|
|
403
|
|
1,075
|
|
1,169
|
Total capital
expenditures
|
$
2,406
|
|
$
1,861
|
|
$
6,456
|
|
$
5,563
|
|
|
|
|
|
|
|
|
Of which:
Commercial services
|
$
369
|
|
$
353
|
|
$
1,110
|
|
$
1,083
|
|
|
|
|
|
|
|
|
Capital expenditures
included in total related to:
|
|
|
|
|
|
|
|
Core cable
(f)
|
$
1,785
|
|
$
1,742
|
|
$
5,077
|
|
$
5,208
|
Mobile
|
96
|
|
119
|
|
265
|
|
355
|
Rural construction
initiative (g)
|
525
|
|
—
|
|
1,114
|
|
—
|
Total capital
expenditures
|
$
2,406
|
|
$
1,861
|
|
$
6,456
|
|
$
5,563
|
|
|
(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)
|
Core cable represents
total capital expenditures excluding mobile and rural construction
initiative capital expenditures.
|
(g)
|
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.