Charter residential video customers up 12,000 in 3Q 2015

Thursday, October 29th, 2015
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Residential primary service units (“PSUs”) increased by 180,000 during the third quarter versus a gain of 114,000 in the prior-year period, including residential video net additions of 12,000

STAMFORD, Conn. — Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, the “Company” or “Charter”) today reported financial and operating results for the three and nine months ended September 30, 2015.

Residential video customers increased by 12,000 in the third quarter of 2015, versus a loss of 9,000 in the year-ago period. Excluding the impact of bulk digital upgrades, Charter’s residential video customers grew by 11,000 during the third quarter, versus a loss of 29,000 during the prior-year period.

For the past three years, Charter has significantly increased the competitiveness of its video product, by including more HD channels and video on demand offerings, attractive packaging of advanced services, improved selling methods, and enhanced service quality. Today, virtually all of Charter’s passings are fully digitized, with access to more HD channels than satellite TV offers, and as of September 30, 2015, 97% of video customers subscribed to the Company’s expanded basic video service.

Charter has introduced its new cloud-based user interface, Spectrum Guide, to its video customers in certain markets. Spectrum Guide dramatically improves video content search and discovery, and fully enables Charter’s on-demand offering. In addition, Spectrum Guide can function on nearly all of Charter’s deployed set-tops. Charter is also poised to launch its new set-top box, World Box, which features downloadable security along with other advanced functionality, driving an enhanced customer experience and reducing incremental set-top box costs.

Video (thousands)

                                               2014                 2015
                         --------------------------  -------------------
                            1Q     2Q     3Q     4Q     1Q     2Q     3Q
                         -----  -----  -----  -----  -----  -----  -----
Customers                4,195  4,166  4,157  4,160  4,153  4,120  4,132
Net Additions/(Losses)      18   (29)    (9)      3    (7)   (33)     12

In May 2015, Charter entered into a merger agreement with Time Warner Cable and, CCH I, LLC (“New Charter”), pursuant to which the parties to the agreement will engage in a series of transactions that will result in Charter and Time Warner Cable becoming wholly owned subsidiaries of New Charter (the “TWC Transaction”). After giving effect to the TWC Transaction, New Charter will be the new public company parent that will hold the operations of the combined companies.

In May 2015, in connection with the execution of the merger agreement with Time Warner Cable, Charter’s contribution agreement with Advance/Newhouse Partnership was amended pursuant to which Charter would become the owner of the membership interests in Bright House and any other assets primarily related to Bright House.