Charter Fourth-Quarter and Annual 2006 Financial and Operating Results

Wednesday, February 28th, 2007
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Double-Digit Quarterly Revenue and Adjusted EBITDA Growth Driven by Strong High-Speed Internet and Telephone Growth Through Bundled Offers

  • Fourth-quarter revenues grew 11.7% and annual revenues grew 10.0% year over year on a pro forma basis, primarily driven by strong high-speed Internet (HSI) and telephone performance.
  • Fourth-quarter adjusted EBITDA increased 10.3% and annual adjusted EBITDA increased 5.3% year over year on a pro forma basis. (Adjusted EBITDA is defined in the “Use of Non-GAAP Financial Metrics” section and is reconciled to net cash flows from operating activities in the addendum of this news release.)
  • On a pro forma basis, bundled customers increased 18% compared to fourth quarter 2005 and revenue generating units (RGUs) increased by 162,400 during the fourth quarter of 2006. Charter added a net 710,700 RGUs during the full year of 2006, a 64% increase compared to 2005 additions.
  • Telephone customers climbed to 445,800 as of December 31, 2006, up more than 30% from September 30, 2006. Telephone homes passed grew to approximately 6.8 million as of December 31, 2006.
  • Earlier this month, Charter initiated a refinancing and expansion of the existing $6.850 billion senior secured credit facilities.

ST. LOUIS — Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, the “Company” or “Charter”) today reported its fourth-quarter and annual 2006 financial and operating results. These results are consistent with preliminary results reported on February 9, 2007.

Key Operating Results

Charter added a net 162,400 RGUs during the fourth quarter.

  • Telephone customers increased by approximately 106,200.
  • HSI customers increased by approximately 59,000.
  • Digital video customers increased by approximately 40,500.
  • Analog video customers decreased by approximately 43,300. During 2006, Charter added a net 710,700 RGUs on a pro forma basis, a 64% increase compared to 2005 pro forma net additions of 433,700. RGUs increased 6.8% during 2006.
  • Telephone customers increased 309,800 in 2006 compared to 75,800 in 2005.
  • HSI customers increased 304,500 in 2006 compared to 303,100 in 2005.
  • Digital customers increased 169,900 in 2006 compared to 125,600 in 2005.
  • Analog customers decreased 73,500 in 2006 compared to 70,800 in 2005.

As of December 31, 2006, Charter served approximately 11,089,700 RGUs, comprised of 5,433,300 analog video, 2,808,400 digital video, 2,402,200 HSI, and 445,800 telephone customers.