Charter Reports Third-Quarter Financial and Operating Results

Thursday, November 8th, 2007
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Double-digit Pro Forma Revenue and Pro Forma Adjusted EBITDA Growth for the Fourth Consecutive Quarter

  • Third-quarter pro forma revenues of $1.526 billion grew 11.2% year over year and actual revenue grew 9.9%, driven by significant increases in telephone and high-speed Internet (HSI) revenues.
  • Third-quarter pro forma adjusted EBITDA of $511 million increased 10.6% year over year and actual adjusted EBITDA grew 9.2%.
  • Total ARPU (average revenue per customer) increased 13.0% year over year, driven by increased sales of The Charter Bundle(TM) and advanced services growth.
  • In October, Charter successfully completed a convertible note exchange offer, extending 88% of the Company’s convertible senior notes due 2009.

ST. LOUIS — Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, the “Company” or “Charter”) today reported its third-quarter 2007 financial and operating results.

Key Operating Results

All of the following customer growth and ARPU statistics are presented on a pro forma basis. Charter added a net 130,900 revenue generating units (“RGUs”) during the third quarter of 2007, and year to date has added 629,600 RGUs. As of September 30, 2007, Charter served approximately 5,655,900 customers. The Company’s 11,672,500 RGUs were comprised of 5,347,800 analog video, 2,882,900 digital video, 2,639,200 HSI, and 802,600 telephone customers.

  • Telephone customers increased by approximately 102,300 in the third quarter of 2007. Year to date, telephone customers increased 356,800, compared to 203,600 telephone customer net additions in the first nine months of 2006.
  • HSI customers increased by approximately 53,000 in the third quarter of 2007. Year to date, HSI customers increased 237,300, compared to 245,600 HSI customer net additions in the first nine months of 2006.
  • Digital video customers increased by approximately 15,800 in the third quarter of 2007. Year to date, digital video customers increased 88,500, compared to 130,000 digital video net additions in the first nine months of 2006.
  • Analog video customers decreased by approximately 40,200 in the third quarter of 2007. Year to date, analog video customers decreased 53,000, compared to a net loss of 27,800 analog video customers in the first nine months of 2006.

Third-quarter 2007 total ARPU increased 13.0%, with video ARPU increasing 4.3% and HSI ARPU increasing 6.1%, as compared to the same period in 2006, driven primarily by advanced services and upgrading customers to higher Internet speeds and programming tiers.

We now serve 802,600 telephone customers – more than double the 339,600 customers served as of September 30, 2006. Charter Telephone® was available to approximately 8.3 million homes as of September 30, 2007, and as of October 31, 2007, we passed an additional 300,000 homes. Charter will continue to focus on driving deeper penetration of telephone service and bundled service packages, while further expanding our telephone footprint. Charter expects telephone service to reach between 9.5 million and 10 million homes passed by the end of 2008.