Charter residential video customers decline 27,000 in 3Q 2013

Tuesday, November 5th, 2013
Charter Communications logo

STAMFORD, Conn. — Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”) today reported financial and operating results for the three and nine months ended September 30, 2013.

On July 1, Charter completed its acquisition of Cablevision’s Bresnan Broadband Holdings, LLC and its subsidiaries (collectively, “Bresnan”). As a result of the acquisition, Charter added cable operating systems in Montana, Wyoming, Colorado and Utah that pass approximately 670,000 homes and serve approximately 375,000 residential and business customers. All customer data referred to herein, are pro forma for the Bresnan transaction, as if it had occurred on January 1, 2012.

During the third quarter, Charter continued to pursue its all-digital initiative and completed its all-digital network upgrade in portions of its California and Michigan footprints, with customers in each of these markets now having access to over 170 HD channels. Charter’s all digital initiative allows the Company to offer more advanced services to its customers, and provides residential customers with two-way digital set-tops, which offer higher picture quality, an interactive programming guide and video on demand. Charter expects to complete its all-digital roll out across its entire footprint by year end 2014.

Residential video customers declined by 27,000 in the third quarter of 2013, versus a loss of 71,000 in the year-ago period. The year over year improvement in video net adds results was driven by a more competitive video product, which now includes over 100 HD channels, packaging of advanced services, and the transition to new selling methods.

Residential Customers (000s):

                                  Approximate as of
            Actual                        Pro Forma
         ---------  -------------------------------
         September       June   December  September
          30, 2013   30, 2013   31, 2013   30, 2012
         ---------  ---------  ---------  ---------
Video        4,179      4,206      4,286      4,322