Charter Reports Fourth Quarter and Full Year Financial and Operating Results

Wednesday, February 27th, 2008
Charter Communications logo

ST. LOUIS — Charter Communications, Inc. (NASDAQ: CHTR) (along with its subsidiaries, the “Company” or “Charter”) today reported its fourth quarter and full year 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 199,100 RGUs during the fourth quarter of 2007, and for the full year added 835,900 RGUs, a 15.3% increase in RGU net adds over 2006. As of December 31, 2007, Charter served approximately 5,596,300 customers and the Company’s 11,782,100 RGUs were comprised of 5,219,900 analog video, 2,920,400 digital video, 2,682,500 HSI, and 959,300 telephone customers.

  • Telephone customers increased by approximately 155,300 in the fourth quarter of 2007, the most quarterly phone net additions in Charter history. The Company added 513,000 customers during the year 2007, ending the year at 10.6% penetration.
  • HSI customers increased by approximately 50,500 in the fourth quarter of 2007 and by 289,100 during the year 2007. HSI ARPU increased 4.8% compared to the fourth quarter of 2006, primarily due to content improvements and customers purchasing enhanced speeds.
  • Digital video customers increased by approximately 59,700 in the fourth quarter of 2007 and analog video customers decreased by 66,400. For the full year, the company gained 150,100 digital video customers and lost 116,300 analog video customers. Video ARPU increased 5.8% compared to the fourth quarter of 2006 due to growth in revenue from advanced services and rate adjustments.
  • Fourth quarter 2007 total ARPU increased 12.9% to $97.99 from the same period in 2006, driven primarily by bundling, advanced services growth, and upgrading customers to higher Internet speeds and programming tiers.
            CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
              UNAUDITED SUMMARY OF OPERATING STATISTICS

                                             Approximate
                               ---------------------------------------
                                  Actual         Pro Forma as of
                               ------------ --------------------------
                               December 31, September 30, December 31,
                                      2007          2007         2006
                               ------------ ------------  ------------

Video Cable Services:
Video:
  Estimated homes passed        11,847,600   11,641,300    11,519,000
  Video customers                5,219,900    5,286,300     5,336,200
  Estimated penetration of
   video homes passed                 44.1%        45.4%         46.3%
  Pro forma video customers
   quarterly net gain (loss)       (66,400)     (38,700)      (40,700)

Digital Video:
  Estimated digital video
   homes passed                 11,753,300   11,546,400    11,385,000
  Digital video customers        2,920,400    2,860,700     2,770,300
  Estimated penetration of
   digital homes passed               24.8%        24.8%         24.3%
  Digital penetration of video
   customers                          55.9%        54.1%         51.9%
  Digital set-top terminals
   deployed                      4,192,700    4,125,400     3,985,600
  Pro forma digital video
   customers quarterly net
   gain                             59,700       16,700        41,100

At September 30, 2007 actual video customers, digital video customers, high-speed Internet customers and telephone customers were 5,347,800, 2,882,900, 2,639,200, and 802,600, respectively.

At December 31, 2006 actual video customers, digital video customers, high-speed Internet customers and telephone customers were 5,433,300, 2,808,400, 2,402,200, and 445,800, respectively.