Charter residential video customers down 152,000 in 2Q 2016

Tuesday, August 9th, 2016 
Charter Communications logo

STAMFORD, Conn. — Charter Communications, Inc. (formerly known as CCH I, LLC, along with its subsidiaries, the “Company” or “Charter”) today reported financial and operating results for the three and six months ended June 30, 2016. On May 18, 2016, Charter completed its transactions between the Company, Time Warner Cable Inc. (“Legacy TWC”), Charter Communications, Inc. (“Legacy Charter”) and Bright House Networks, LLC (“Legacy Bright House”) (collectively, the “Transactions”).

Residential video customers decreased by 152,000 in the second quarter of 2016, versus a decrease of 170,000 in the year-ago period, driven by better year-over-year performance at Legacy Charter and Legacy Bright House, partially offset by higher video losses at Legacy TWC. As of the end of the second quarter of 2016, Legacy Charter’s footprint was virtually 100% all-digital, compared to 60% at Legacy TWC and 40% at Legacy Bright House. As of June 30, 2016, Charter had 16.9 million residential video customers.

Starting in the fall of 2016, Charter will begin to introduce Charter Spectrum, in certain Legacy TWC and Legacy Bright House markets, with remaining markets to follow in 2017. Charter Spectrum is an industry-leading suite of video, Internet, and voice services that includes over 200 HD channels, minimum offered Internet speeds of 60 Mbps, and a fully featured voice service, delivered at a highly competitive price. As of the end of the second quarter of 2016, 92% of Legacy Charter’s residential customers received Charter Spectrum products.

Beginning in early 2017, Charter will also restart all-digital efforts in those Legacy TWC and Legacy Bright House markets that continue to broadcast analog video signals. All-digital allows Charter to offer more advanced products and services, and will provide residential customers with two-way digital set-tops, which offer higher picture quality, an interactive programming guide and video on demand on all TV outlets in the home. Charter intends to complete the all-digital conversion in Legacy TWC and Legacy Bright House markets by the end of 2018.

Residential – Video – Primary Service Units

                                                          2014
                        --------------------------------------
                            1Q      2Q      3Q      4Q      FY
                        ------  ------  ------  ------  ------
Total                   17,623  17,339  17,121  17,114  17,114
Net Additions/(Losses)    (19)   (284)   (218)     (7)   (528)

                                                          2015
                        --------------------------------------
                            1Q      2Q      3Q      4Q      FY
                        ------  ------  ------  ------  ------
Total                   17,134  16,964  16,944  17,062  17,062
Net Additions/(Losses)      20   (170)    (20)     118    (52)

                                                          2016
                        --------------------------------------
                            1Q      2Q      3Q      4Q      FY
                        ------  ------  ------  ------  ------
Total                   17,086  16,934
Net Additions/(Losses)      24   (152)