Charter video customers down 51,000 in 4Q 2016

Thursday, February 16th, 2017 
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Charter Announces Fourth Quarter and Full Year 2016 Results

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 twelve months ended December 31, 2016.

In November, Charter continued introducing its Spectrum brand, and residential pricing and packaging in additional Legacy TWC markets, including New York City, as well as in all Legacy Bright House markets. Spectrum is an industry-leading suite of video, Internet, and voice services that includes over 200 HD channels, minimum offered Internet speeds of at least 60 Mbps, and a fully featured voice service, delivered at a highly competitive price. As of the end of the fourth quarter of 2016, 94% of Legacy Charter’s residential customers received Charter Spectrum products.

Charter will complete the launch of Spectrum to residences in the majority of remaining Legacy TWC markets in the first quarter of 2017. In the fourth quarter, Spectrum Enterprise launched new pricing and packaging to the enterprise marketplace, and during the second quarter of 2017, Charter will launch Spectrum pricing and packaging for small and medium businesses in Legacy TWC and Legacy Bright House markets.

In the second quarter of 2017, Charter will also restart all-digital efforts in the approximately 40% of Legacy TWC’s footprint and 60% of Legacy Bright House’s footprint that are not yet all-digital. All-digital allows Charter to offer more advanced products and services, and provides residential customers with two-way digital set-tops, which offer better 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 in less than 2 years, with a minimum Internet speed offering of 100 Mbps in many markets. As of the end of the fourth quarter of 2016, Legacy Charter’s footprint was 100% all-digital.

Residential video customers decreased by 51,000 in the fourth quarter of 2016, versus an increase of 118,000 in the year-ago period, driven primarily by higher year-over-year video losses at Legacy TWC. Over the last twelve months, Legacy Charter grew residential video customers by 42,000 or 1.0%. As of December 31, 2016, Charter had 16.8 million residential video customers.

Residential – Video – Primary Service Units

                                                           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  16,887  16,836  16,836
Net Additions/(Losses)       24   (152)    (47)    (51)   (226)

On May 18, 2016, Charter completed its transactions between the Company, Time Warner Cable Inc. (“Legacy TWC”) and Charter Communications, Inc. (“Legacy Charter”), and Legacy Charter and Bright House Networks, LLC (“Legacy Bright House”) (collectively, the “Transactions”). In this release, actual results reflect the operations of Legacy Charter for the year ended December 31, 2016 and Legacy TWC and Legacy Bright House for the period from May 18, 2016 through December 31, 2016. Pro forma results give effect to the Transactions as if they had closed at the beginning of the earliest period presented and include the operations of Legacy Charter, Legacy TWC and Legacy Bright House for the full year ended December 31, 2016 and three and twelve months ended December 31, 2015.

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