Charter adds 25.6k digital video customers in Q1

ST. LOUIS — Charter Communications, Inc. (Pink OTC: CHTRQ) (along with its subsidiaries, the “Company” or “Charter”) today reported financial and operating results for the three months ended March 31, 2009.

As of March 31, 2009, Charter served approximately 5,433,200 customers and the Company’s 12,541,600 RGUs were comprised of 5,013,700 basic video; 3,157,700 digital video; 2,947,100 HSI, and 1,423,100 telephone customers.

Digital video customers increased by approximately 25,600 and basic video customers decreased by 22,200 during the first quarter. Video ARPU was $60.61 for the first quarter of 2009, up 5.3% year-over-year. Customers leasing high-definition or digital video recorder set tops has increased more than 30% year over year, and on demand orders during the first quarter of 2009 increased nearly 40% compared to the year ago quarter, driving increased video ARPU and customer satisfaction.

Summary of Operating Statistics:

                                                                       Approximate as of
                                                      ----------------------------------
                                                         Actual                Pro Forma
                                                      ---------  -----------------------
                                                      March 31,  December 31,  March 31,
                                                           2009       2008          2008
                                                      ---------  ------------  ---------
Digital video customers                               3,157,700     3,132,100  3,014,200
Digital penetration of basic video customers              63.0%         62.2%      58.2%
Digital set-top terminals deployed                    4,604,000     4,548,100  4,328,600
Pro forma digital video customers quarterly net gain     25,600        22,400    102,600

Restructuring

As of March 31, 2009, Charter had $21.623 billion in debt, $9.849 billion of which was classified as liabilities subject to compromise due to Charter’s restructuring efforts. As previously announced, on March 27, 2009, Charter filed its pre-arranged Joint Plan of Reorganization (the “Pre-Arranged Plan”) and Chapter 11 petitions in the United States Bankruptcy Court for the Southern District of New York (the “Court”) in order to implement a financial restructuring that, upon approval, would reduce the Company’s debt by approximately $8 billion. The Pre-Arranged Plan also includes the investment by certain of the Company’s debt holders of more than $3 billion, including up to $2 billion in equity proceeds, $1.2 billion in roll-over debt and $267 million in new debt to support the overall refinancing. Charter expects the proposed restructuring to position the Company to generate positive free cash flow through significant interest expense reductions.

As a debtor in possession, the Company is authorized to transact business in the ordinary course of business and, as such, has been paying its trade creditors in full in the normal course. Charter expects that cash on hand and cash flows from operating activities will be adequate to fund its projected cash needs as it proceeds with its financial restructuring.

The Company’s principal Chapter 11 petition has been assigned the lead case number 09-11435. Additional information about Charter’s restructuring, including the disclosure statement describing the Pre-Arranged Plan and the terms of the committed and optional investments by members of the Bondholder Committee, is available at the Company’s website www.charter.com. You may also receive information from the Company’s restructuring information line, 800-419-3922. For access to Court documents and other general information about the Chapter 11 cases, please visit www.kccllc.net/charter.

More: Earnings Release