EX-99.1 2 chtrex991earningsrelease63.htm EX-99.1 Document

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NEWS

Charter Announces Second Quarter 2023 Results

Stamford, Connecticut - July 28, 2023 - Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”) today reported financial and operating results for the three and six months ended June 30, 2023.

•Second quarter total residential and small and medium business ("SMB") Internet customers increased by 77,000. As of June 30, 2023, Charter served a total of 30.6 million residential and SMB Internet customers.

•Second quarter total residential and SMB mobile lines increased by 648,000. As of June 30, 2023, Charter served a total of 6.6 million mobile lines.

•As of June 30, 2023, Charter had a total of 32.2 million residential and SMB customer relationships, which excludes mobile-only relationships.

•Second quarter revenue of $13.7 billion grew by 0.5% year-over-year, driven by residential Internet revenue growth of 3.1%, residential mobile service revenue growth of 29.8% and other revenue growth of 28.5%, primarily driven by higher mobile device sales.

•Net income attributable to Charter shareholders totaled $1.2 billion in the second quarter.

•Second quarter Adjusted EBITDA1 of $5.5 billion grew by 0.2% year-over-year.

•Second quarter capital expenditures totaled $2.8 billion and included $1.1 billion of line extensions.

•Second quarter net cash flows from operating activities totaled $3.3 billion, compared to $3.7 billion in the prior year. The year-over-year decline was primarily due to higher cash taxes.

•Second quarter free cash flow1 of $668 million decreased from $1.7 billion in the prior year, primarily due to higher capital expenditures, mostly driven by Charter's network expansion and evolution initiatives, and higher cash taxes.

•During the second quarter, Charter purchased 1.1 million shares of Charter Class A common stock and Charter Communications Holdings, LLC ("Charter Holdings") common units for approximately $378 million.

"We are growing our business by providing differentiated and valuable products, and high-quality service to our customers," said Chris Winfrey, President and CEO of Charter. "We are also executing well on our evolution and expansion initiatives, and these strategic investments will lead to further customer and financial growth, creating long-term value for Charter shareholders."



1.Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.
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Key Operating Results
Approximate as of
June 30, 2023 (c)
June 30, 2022 (c)
Y/Y Change
Footprint (d)
Estimated Passings56,209 55,008 2.2 %
Customer Relationships (e)
Residential30,009 29,942 0.2 %
SMB2,219 2,182 1.7 %
Total Customer Relationships32,228 32,124 0.3 %
Residential13 (93)106 
SMB4 19 (15)
Total Customer Relationships Quarterly Net Additions17 (74)91 
Total Customer Relationship Penetration of Estimated Passings (f)57.3 %58.4 %(1.1) ppts
Monthly Residential Revenue per Residential Customer (g)$120.25 $120.61 (0.3)%
Monthly SMB Revenue per SMB Customer (h)$164.56 $167.47 (1.7)%
Residential Customer Relationships Penetration
One Product Penetration (i)46.0 %45.4 %0.6 ppts
Two Product Penetration (i)33.0 %32.6 %0.4 ppts
Three or More Product Penetration (i)20.9 %22.0 %(1.1) ppts
% Residential Non-Video Customer Relationships53.1 %50.4 %2.7 ppts
Internet
Residential28,549 28,259 1.0 %
SMB2,037 1,994 2.1 %
Total Internet Customers30,586 30,253 1.1 %
Residential70 (42)112 
SMB7 21 (14)
Total Internet Quarterly Net Additions77 (21)98 
Video
Residential14,071 14,853 (5.3)%
SMB635 642 (1.0)%
Total Video Customers14,706 15,495 (5.1)%
Residential(189)(240)51 
SMB(11)14 (25)
Total Video Quarterly Net Additions(200)(226)26 
Voice
Residential7,248 8,200 (11.6)%
SMB1,294 1,287 0.6 %
Total Voice Customers8,542 9,487 (10.0)%
Residential(225)(265)40 
SMB4 (1)5 
Total Voice Quarterly Net Additions(221)(266)45 
Mobile Lines (j)
Residential6,410 4,134 55.1 %
SMB216 147 46.5 %
Total Mobile Lines6,626 4,281 54.8 %
Residential628 329 299 
SMB20 15 5 
Total Mobile Lines Quarterly Net Additions648 344 304 
Enterprise (k)
Enterprise Primary Service Units ("PSUs")294 277 6.2 %
Enterprise Quarterly Net Additions6 3 3 

In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
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As of June 30, 2023, Charter had 30.0 million residential customer relationships.

Second quarter residential Internet customers increased by 70,000, compared to an increase of 17,000 during the second quarter of 2022 when excluding last year's 59,000 customer disconnects related to the discontinuation of the Emergency Broadband Benefit program and additional requirements of the Affordable Connectivity Program.

Spectrum Internet® delivers the fastest Internet and WiFi download speeds in the nation.1 Charter offers Spectrum Internet products with speeds up to 1 Gbps across its entire footprint and is on plan to evolve its network to offer symmetrical and multi-gigabit speeds across its entire footprint at a lower cost and more quickly than its competitors. Charter's Advanced WiFi, a managed WiFi service that provides customers an optimized home network while providing greater control of their connected devices with enhanced security and privacy, became available to SMB customers in March, and is available to all Spectrum Internet customers. At the end of the second quarter, over 45% of Charter's total Internet customers had Advanced WiFi. In the first quarter of 2023, Charter completed the deployment of Mobile Speed Boost to all Advanced WiFi routers. In October 2022, Charter introduced Spectrum One, which brings together Spectrum Internet, Advanced WiFi and Unlimited Spectrum MobileTM. Spectrum One products work better together, provide the fastest connectivity, offer more reliable and secure online connections and save customers significant money.

Residential video customers decreased by 189,000 in the second quarter of 2023, compared to a decline of 240,000 in the second quarter of 2022. As of June 30, 2023, Charter had 14.1 million residential video customers. Charter plans to begin deploying Xumo-branded streaming devices in late 2023.

During the second quarter of 2023, residential wireline voice customers declined by 225,000, compared to a decline of 265,000 in the second quarter of 2022. As of June 30, 2023, Charter had 7.2 million residential wireline voice customers.

During the second quarter of 2023, Charter added 628,000 residential mobile lines, compared to growth of 329,000 during the second quarter of 2022. Spectrum Mobile is available to all new and existing Spectrum Internet customers and offers the fastest overall speeds,2 with plans that include 5G access, do not require contracts and include taxes and fees in the price. Spectrum One and Spectrum Mobile are central to Charter's converged network strategy to provide consumers a differentiated connectivity experience with highly competitive, simple data plans and pricing.
    
Second quarter 2023 monthly residential revenue per residential customer totaled $120.25, and decreased by 0.3% compared to the prior year period, given a higher mix of non-video customer relationships and a higher mix of lower priced video packages within Charter's video customer base, partly offset by promotional rate step-ups, rate adjustments and the accelerated growth of Spectrum Mobile.

SMB customer relationships grew by 4,000 in the second quarter of 2023, while second quarter 2022 SMB customer relationships grew by 19,000. Enterprise PSUs grew by 6,000 in the second quarter of 2023 versus 3,000 added in the second quarter of 2022.

Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the second quarter of 2023, Charter activated 68,000 subsidized rural passings.





1.Based on Ookla's Speedtest Global Index median fixed download speeds for Q2 2023.
2.Fastest Overall Speed claim based on Global Wireless Solutions' combined cellular and WiFi speed test results in Spectrum service area where WiFi is available. Cellular speeds vary by location.
3

Second Quarter Financial Results
(in millions)
Three Months Ended June 30,
20232022% Change
Revenues:
Internet$5,733 $5,562 3.1 %
Video4,188 4,484 (6.6)%
Voice365 398 (8.3)%
Mobile service 539 415 29.8 %
Residential revenue10,825 10,859 (0.3)%
Small and medium business1,094 1,092 0.2 %
Enterprise690 669 3.2 %
Commercial revenue1,784 1,761 1.4 %
Advertising sales384 460 (16.5)%
Other666 518 28.5 %
Total Revenues$13,659 $13,598 0.5 %
Net income attributable to Charter shareholders$1,223 $1,471 (16.8)%
Net income attributable to Charter shareholders margin9.0 %10.8 %
Adjusted EBITDA (a)
$5,522 $5,509 0.2 %
Adjusted EBITDA margin40.4 %40.5 %
Capital Expenditures$2,834 $2,193 29.2 %
Net cash flows from operating activities$3,311 $3,734 (11.3)%
Free cash flow (a)
$668 $1,659 (59.7)%

See page 1 of the addendum of this news release for a GAAP reconciliation of Adjusted EBITDA and free cash flow and page 7 of the addendum of this news release for footnotes. The footnotes contain important disclosures regarding the definitions used for these financial results. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

Revenues

Second quarter revenue increased by 0.5% year-over-year to $13.7 billion, driven by growth in residential Internet, mobile service and other revenues, primarily driven by higher mobile device sales, partly offset by lower residential video and advertising sales revenues.

Residential revenue totaled $10.8 billion in the second quarter, a decrease of 0.3% year-over-year.

Internet revenue grew by 3.1% year-over-year to $5.7 billion, driven by growth in Internet customers during the last year, promotional rate step-ups and rate adjustments, partly offset by lower bundled revenue allocation.

Video revenue totaled $4.2 billion in the second quarter, a decrease of 6.6% compared to the prior year period, driven by a higher mix of lower priced video packages within Charter's video customer base and a decline in video customers during the last year, partly offset by promotional rate step-ups and video rate adjustments that pass through programmer rate increases.

Voice revenue totaled $365 million in the second quarter, a decrease of 8.3% compared to the second quarter of 2022, driven by a decline in wireline voice customers over the last twelve months.

Second quarter mobile service revenue totaled $539 million, an increase of 29.8% year-over-year, driven by mobile line growth and higher bundled revenue allocation.

Commercial revenue increased by 1.4% year-over-year to $1.8 billion, driven by SMB and enterprise revenue growth of 0.2% and 3.2% year-over-year, respectively. Second quarter 2023 SMB revenue growth was driven by customer relationship growth, partly offset by lower monthly SMB revenue
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per SMB customer primarily due a higher mix of lower priced video packages and a lower number of voice lines per SMB customer relationship. Enterprise revenue excluding wholesale increased by 7.2% year-over-year, mostly reflecting PSU growth.

Second quarter advertising sales revenue of $384 million decreased by 16.5% compared to the year-ago quarter, primarily driven by lower political revenue. Excluding political revenue in both periods, advertising sales revenue decreased by 3.5% year-over-year, due to a more challenged advertising market, partly offset by higher advanced advertising revenue.

Other revenue totaled $666 million in the second quarter, an increase of 28.5% compared to the second quarter of 2022, driven by higher mobile device sales.

Operating Costs and Expenses

Second quarter programming costs decreased by $232 million, or 7.8% as compared to the second quarter of 2022, reflecting fewer video customers and a higher mix of lower cost packages within Charter's video customer base, partly offset by contractual programming rate increases and renewals.

Other costs of revenue increased by $182 million, or 15.4% year-over-year, primarily driven by higher mobile device sales and other mobile direct costs and higher regional sports network costs given more games played in the second quarter of 2023 compared to second quarter 2022, partly offset by lower advertising sales expense.

Costs to service customers increased by $72 million, or 3.6% year-over-year. The year-over-year increase in costs to service customers was primarily driven by adjustments to job structure, pay and benefits to build a more skilled and longer tenured workforce resulting in lower frontline employee attrition compared to 2022, and additional activity to support the accelerated growth of Spectrum Mobile, partly offset by productivity improvements and lower bad debt.

Sales and marketing expenses increased by $31 million, or 3.6% year-over-year, primarily due to higher staffing across sales channels and the accelerated growth of Spectrum Mobile.

Other expenses decreased by $5 million, or 0.4% as compared to the second quarter of 2022, primarily due to favorability in insurance expense, mostly offset by higher labor costs.

Net Income Attributable to Charter Shareholders

Net income attributable to Charter shareholders totaled $1.2 billion in the second quarter of 2023, compared to $1.5 billion in the second quarter of 2022. The year-over-year decrease in net income attributable to Charter shareholders was primarily driven by higher interest expense and other non-operating costs and expenses, partly offset by higher Adjusted EBITDA.

Net income per basic common share attributable to Charter shareholders totaled $8.15 in the second quarter of 2023 compared to $8.96 during the same period last year. The decrease was primarily the result of the factors described above, partly offset by the benefit of an 8.5% decrease in basic weighted average common shares outstanding versus the prior year period.

Adjusted EBITDA

Second quarter Adjusted EBITDA of $5.5 billion grew by 0.2% year-over-year, reflecting growth in revenue and operating expenses of 0.5% and 0.6%, respectively.
    

5

Capital Expenditures

Capital expenditures totaled $2.8 billion in the second quarter of 2023, compared to $2.2 billion during the second quarter of 2022. The increase was primarily driven by higher spend on line extensions, which totaled $1.1 billion in the second quarter of 2023, compared to $693 million in the prior year quarter, driven by Charter's subsidized rural construction initiative and continued network expansion across residential and commercial greenfield and market fill-in opportunities. Second quarter capital expenditures excluding line extensions totaled $1.8 billion, compared to $1.5 billion in the second quarter of 2022, primarily driven by higher spend on upgrade/rebuild (primarily network evolution) and support capital.

Charter currently expects full year 2023 capital expenditures, excluding line extensions, to be between $6.5 billion and $6.8 billion. Charter expects 2023 line extensions capital expenditures to be approximately $4 billion. The actual amount of capital expenditures in 2023 will depend on a number of factors including, but not limited to, the pace of Charter's network evolution and expansion initiatives, supply chain timing and growth rates in Charter's residential and commercial businesses.

Cash Flow and Free Cash Flow

During the second quarter of 2023, net cash flows from operating activities totaled $3.3 billion, compared to $3.7 billion in the prior year quarter. The year-over-year decrease in net cash flows from operating activities was primarily due to higher cash taxes.

Free cash flow in the second quarter of 2023 totaled $668 million, compared to $1.7 billion during the same period last year. The year-over-year decrease in free cash flow was primarily driven by a decrease in net cash flows from operating activities and an increase in capital expenditures.

Liquidity & Financing

As of June 30, 2023, total principal amount of debt was $97.8 billion and Charter's credit facilities provided approximately $3.2 billion of additional liquidity in excess of Charter's $478 million cash position.

Share Repurchases

During the three months ended June 30, 2023, Charter purchased 1.1 million shares of Charter Class A common stock and Charter Holdings common units for approximately $378 million.
6

Webcast

Charter will host a webcast on Friday, July 28, 2023 at 8:30 a.m. Eastern Time (ET) related to the contents of this release.

The webcast can be accessed live via the Company's investor relations website at ir.charter.com. Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast.

Additional Information Available on Website

The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2023, which will be posted on the “Results & SEC Filings” section of the Company's investor relations website at ir.charter.com, when it is filed with the Securities and Exchange Commission (the "SEC"). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the “Results & SEC Filings” section.

Use of Adjusted EBITDA and Free Cash Flow Information

The Company uses certain measures that are not defined by U.S. generally accepted accounting principles ("GAAP") to evaluate various aspects of its business. Adjusted EBITDA and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income attributable to Charter shareholders and net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and free cash flow are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the Addendum to this release.

Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company's businesses as well as other non-cash or special items, and is unaffected by the Company's capital structure or investment activities. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures.  

Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.  

Management and Charter's board of directors use Adjusted EBITDA and free cash flow to assess Charter's performance and its ability to service its debt, fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the leverage ratio calculation under the Company's credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company's debt covenants refer to these expenses as management fees, which were $335 million and $709 million for the three and six months ended June 30, 2023, respectively, and $348 million and $690 million for the three and six months ended June 30, 2022, respectively.

7

About Charter

Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator serving more than 32 million customers in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.

For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.


# # #

Contact:
Media:
Analysts:
Justin VenechStefan Anninger
203-905-7818203-905-7955

8

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under “Risk Factors” from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as “believe,” “expect,” “anticipate,” “should,” “planned,” “will,” “may,” “intend,” “estimated,” “aim,” “on track,” “target,” “opportunity,” “tentative,” “positioning,” “designed,” “create,” “predict,” “project,” "initiatives," “seek,” “would,” “could,” “continue,” “ongoing,” “upside,” “increases,” "grow," "focused on" and “potential,” among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in our annual report on Form 10-K, and in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:

•our ability to sustain and grow revenues and cash flow from operations by offering Internet, video, voice, mobile, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures;
•the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite ("DBS") operators, wireless broadband and telephone providers, digital subscriber line (“DSL”) providers, fiber to the home providers and providers of video content over broadband Internet connections;
•general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn;
•our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents and distribution requirements);
•our ability to develop and deploy new products and technologies including consumer services and service platforms;
•any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation;
•the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us;
•the ability to hire and retain key personnel;
•our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives;
•the availability and access, in general, of funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets; and
•our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions.

All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.
9

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(dollars in millions)

Three Months Ended June 30, Six Months Ended June 30,
2023202220232022
Net income attributable to Charter shareholders$1,223 $1,471 $2,244 $2,674 
Plus: Net income attributable to noncontrolling interest190 237 352 423 
Interest expense, net1,298 1,109 2,563 2,169 
Income tax expense444 489 818 834 
Depreciation and amortization2,172 2,240 4,378 4,534 
Stock compensation expense168 104 376 251 
Other, net27 (141)141 (163)
Adjusted EBITDA (a)
$5,522 $5,509 $10,872 $10,722 
Net cash flows from operating activities$3,311 $3,734 $6,634 $7,381 
Less: Purchases of property, plant and equipment(2,834)(2,193)(5,298)(4,050)
Change in accrued expenses related to capital expenditures191 118 (4)128 
Free cash flow (a)
$668 $1,659 $1,332 $3,459 

The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.


UNAUDITED ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA
(dollars in millions)

Three Months Ended June 30, Six Months Ended June 30,
20232022% Change20232022% Change
REVENUES:
Internet$5,733 $5,562 3.1 %$11,451 $11,014 4.0 %
Video4,188 4,484 (6.6)%8,442 8,830 (4.4)%
Voice365 398 (8.3)%738 789 (6.4)%
Mobile service539 415 29.8 %1,036 802 29.1 %
Residential revenue10,825 10,859 (0.3)%21,667 21,435 1.1 %
Small and medium business1,094 1,092 0.2 %2,185 2,162 1.1 %
Enterprise690 669 3.2 %1,372 1,330 3.1 %
Commercial revenue1,784 1,761 1.4 %3,557 3,492 1.9 %
Advertising sales384 460 (16.5)%739 843 (12.3)%
Other666 518 28.5 %1,349 1,028 31.2 %
Total Revenues13,659 13,598 0.5 %27,312 26,798 1.9 %
COSTS AND EXPENSES:
Programming2,740 2,972 (7.8)%5,539 5,949 (6.9)%
Other costs of revenue1,367 1,185 15.4 %2,695 2,293 17.5 %
Costs to service customers 2,069 1,997 3.6 %4,164 3,956 5.3 %
Sales and marketing895 864 3.6 %1,841 1,744 5.6 %
Other expense (b)
1,066 1,071 (0.4)%2,201 2,134 3.1 %
Total operating costs and expenses (b)
8,137 8,089 0.6 %16,440 16,076 2.3 %
Adjusted EBITDA (a)
$5,522 $5,509 0.2 %$10,872 $10,722 1.4 %

All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

See footnotes on page 7.
Addendum to Charter Communications, Inc. Second Quarter 2023 Earnings Release
Page 1 of 7


CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in millions, except per share data)

Three Months Ended June 30, Six Months Ended June 30,
2023202220232022
REVENUES$13,659 $13,598 $27,312 $26,798 
COSTS AND EXPENSES:
Operating costs and expenses (exclusive of items shown separately below)8,305 8,193 16,816 16,327 
Depreciation and amortization2,172 2,240 4,378 4,534 
Other operating income, net(58)(62)(48)(61)
10,419 10,371 21,146 20,800 
Income from operations3,240 3,227 6,166 5,998 
OTHER INCOME (EXPENSES):
Interest expense, net(1,298)(1,109)(2,563)(2,169)
Other income (expense), net(85)79 (189)102 
(1,383)(1,030)(2,752)(2,067)
Income before income taxes1,857 2,197 3,414 3,931 
Income tax expense(444)(489)(818)(834)
Consolidated net income 1,413 1,708 2,596 3,097 
Less: Net income attributable to noncontrolling interests
(190)(237)(352)(423)
Net income attributable to Charter shareholders$1,223 $1,471 $2,244 $2,674 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS:
Basic$8.15 $8.96 $14.89 $15.98 
Diluted$8.05 $8.80 $14.69 $15.66 
Weighted average common shares outstanding, basic
150,091,880 164,049,619 150,761,406 167,350,535 
Weighted average common shares outstanding, diluted
151,975,698 167,090,925 152,727,540 170,741,462 






Addendum to Charter Communications, Inc. Second Quarter 2023 Earnings Release
Page 2 of 7


CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)

June 30,December 31,
20232022
ASSETS(unaudited)
CURRENT ASSETS:
Cash and cash equivalents$478 $645 
Accounts receivable, net2,864 2,921 
Prepaid expenses and other current assets587 451 
Total current assets3,929 4,017 
INVESTMENT IN CABLE PROPERTIES:
Property, plant and equipment, net37,546 36,039 
Customer relationships, net2,222 2,772 
Franchises67,396 67,363 
Goodwill29,672 29,563 
Total investment in cable properties, net136,836 135,737 
OTHER NONCURRENT ASSETS4,850 4,769 
Total assets$145,615 $144,523 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities$9,976 $10,555 
Current portion of long-term debt1,999 1,510 
Total current liabilities11,975 12,065 
LONG-TERM DEBT95,971 96,093 
DEFERRED INCOME TAXES18,982 19,058 
OTHER LONG-TERM LIABILITIES4,660 4,758 
SHAREHOLDERS' EQUITY:
Controlling interest10,460 9,119 
Noncontrolling interests3,567 3,430 
Total shareholders' equity 14,027 12,549 
Total liabilities and shareholders' equity$145,615 $144,523 

Addendum to Charter Communications, Inc. Second Quarter 2023 Earnings Release
Page 3 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)

Three Months Ended June 30, Six Months Ended June 30,
2023202220232022
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income $1,413 $1,708 $2,596 $3,097 
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization2,172 2,240 4,378 4,534 
Stock compensation expense168 104 376 251 
Noncash interest, net7 (4)4 (7)
Deferred income taxes(40)77 (63)115 
Other, net83 (132)187 (153)
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:
Accounts receivable(13)(249)57 (200)
Prepaid expenses and other assets(25)52 (361)(133)
Accounts payable, accrued liabilities and other(454)(62)(540)(123)
Net cash flows from operating activities3,311 3,734 6,634 7,381 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment(2,834)(2,193)(5,298)(4,050)
Change in accrued expenses related to capital expenditures191 118 (4)128 
Other, net(207)(220)(287)(160)
Net cash flows from investing activities(2,850)(2,295)(5,589)(4,082)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt3,944 9,918 11,048 16,631 
Repayments of long-term debt(3,995)(8,993)(10,735)(11,947)
Payments for debt issuance costs— (20)(18)(57)
Purchase of treasury stock(326)(3,687)(1,238)(7,020)
Proceeds from exercise of stock options 3 4 5 5 
Purchase of noncontrolling interest(54)(578)(176)(994)
Distributions to noncontrolling interest(80)(5)(83)(7)
Other, net(9)(26)(15)(28)
Net cash flows from financing activities(517)(3,387)(1,212)(3,417)
NET DECREASE IN CASH AND CASH EQUIVALENTS (56)(1,948)(167)(118)
CASH AND CASH EQUIVALENTS, beginning of period534 2,431 645 601 
CASH AND CASH EQUIVALENTS, end of period$478 $483 $478 $483 
CASH PAID FOR INTEREST$1,243 $1,168 $2,432 $2,150 
CASH PAID FOR TAXES$845 $441 $906 $470 

Addendum to Charter Communications, Inc. Second Quarter 2023 Earnings Release
Page 4 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED SUMMARY OF OPERATING STATISTICS
(in thousands, except per customer and penetration data)

Approximate as of
June 30, 2023 (c)
March 31, 2023 (c)
December 31, 2022 (c)
June 30, 2022 (c)
Footprint (d)
Estimated Passings 56,209 55,885 55,573 55,008 
Customer Relationships (e)
Residential 30,009 29,996 29,988 29,942 
SMB2,219 2,215 2,207 2,182 
Total Customer Relationships 32,228 32,211 32,195 32,124 
Residential 13 8 42 (93)
SMB4 8 12 19 
Total Customer Relationships Quarterly Net Additions17 16 54 (74)
Total Customer Relationship Penetration of Estimated Passings (f)
57.3 %57.6 %57.9 %58.4 %
Monthly Residential Revenue per Residential Customer (g)
$120.25 $120.56 $119.32 $120.61 
Monthly SMB Revenue per SMB Customer (h)
$164.56 $164.58 $165.50 $167.47 
Residential Customer Relationships Penetration
One Product Penetration (i)
46.0 %46.0 %45.9 %45.4 %
Two Product Penetration (i)
33.0 %32.8 %32.7 %32.6 %
Three or More Product Penetration (i)
20.9 %21.1 %21.3 %22.0 %
% Residential Non-Video Customer Relationships53.1 %52.5 %51.7 %50.4 %
Internet
Residential28,549 28,479 28,412 28,259 
SMB2,037 2,030 2,021 1,994 
Total Internet Customers30,586 30,509 30,433 30,253 
Residential70 67 92 (42)
SMB7 9 13 21 
Total Internet Quarterly Net Additions77 76 105 (21)
Video
Residential14,071 14,260 14,497 14,853 
SMB635 646 650 642 
Total Video Customers14,706 14,906 15,147 15,495 
Residential(189)(237)(145)(240)
SMB(11)(4)1 14 
Total Video Quarterly Net Additions(200)(241)(144)(226)
Voice
Residential7,248 7,473 7,697 8,200 
SMB1,294 1,290 1,286 1,287 
Total Voice Customers8,542 8,763 8,983 9,487 
Residential(225)(224)(232)(265)
SMB4 4 (1)(1)
Total Voice Quarterly Net Additions(221)(220)(233)(266)
Mobile Lines (j)
Residential6,410 5,782 5,116 4,134 
SMB216 196 176 147 
Total Mobile Lines6,626 5,978 5,292 4,281 
Residential628 666 600 329 
SMB20 20 15 15 
Total Mobile Lines Quarterly Net Additions648 686 615 344 
Enterprise (k)
Enterprise Primary Service Units ("PSUs")294 288 284 277 
Enterprise Quarterly Net Additions6 4 2 3 

See footnotes on page 7.
Addendum to Charter Communications, Inc. Second Quarter 2023 Earnings Release
Page 5 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CAPITAL EXPENDITURES
(dollars in millions)

Three Months Ended June 30, Six Months Ended June 30,
2023202220232022
Customer premise equipment (l)
$576 $560 $1,113 $1,029 
Scalable infrastructure (m)
353 384 707 743 
Upgrade/rebuild (n)
392 189 681 348 
Support capital (o)
431 367 825 696 
Capital expenditures, excluding line extensions1,752 1,500 3,326 2,816 
Subsidized rural construction line extensions529 278 900 470 
Other line extensions553 415 1,072 764 
Total line extensions (p)
1,082 693 1,972 1,234 
Total capital expenditures$2,834 $2,193 $5,298 $4,050 
Capital expenditures included in total related to:
Commercial services$409 $376 $776 $741 
Subsidized rural construction initiative (q)
$541 $296 $932 $497 
Mobile$82 $95 $159 $169 

See footnotes on page 7.

Addendum to Charter Communications, Inc. Second Quarter 2023 Earnings Release
Page 6 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
FOOTNOTES

(a)Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other (income) expenses, net and other operating (income) expenses, net such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
(b)Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net.
(c)We calculate the aging of customer accounts based on the monthly billing cycle for each account. On that basis, at June 30, 2023, March 31, 2023, December 31, 2022 and June 30, 2022, customers included approximately 128,600, 119,800, 144,100 and 154,500 customers, respectively, whose accounts were over 60 days past due, approximately 47,000, 42,100, 52,800 and 45,800 customers, respectively, whose accounts were over 90 days past due and approximately 229,200, 217,800, 214,100 and 97,200 customers, respectively, whose accounts were over 120 days past due. Bad debt expense associated with these past due accounts has been reflected in our consolidated statements of operations. The increase in accounts past due more than 120 days is predominately due to pre-existing and incremental unsubsidized services, including video services, for those customers participating in government assistance programs. These customers are downgraded to a fully subsidized Internet-only service.
(d)Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and SMB and enterprise sites passed by our cable distribution network in the areas where we offer the service indicated. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.
(e)Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video, voice and mobile services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units ("MDUs") and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude enterprise and mobile-only customer relationships.
(f)Penetration represents residential and SMB customers as a percentage of estimated passings. Penetration excludes mobile-only customers.
(g)Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter and excludes mobile-only customer relationships.
(h)Monthly SMB revenue per SMB customer is calculated as total SMB quarterly revenue divided by three divided by average SMB customer relationships during the respective quarter and excludes mobile-only customer relationships.
(i)One product, two product and three or more product penetration represents the number of residential customers that subscribe to one product, two products or three or more products, respectively, as a percentage of residential customer relationships, excluding mobile-only customers.
(j)Mobile lines include phones and tablets which require one of our standard rate plans (e.g., "Unlimited" or "By the Gig"). Mobile lines exclude wearables and other devices that do not require standard phone rate plans.
(k)Enterprise PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
(l)Customer premise equipment includes equipment and devices located at the customer's premise used to deliver our Internet, video and voice services (e.g., modems, routers and set-top boxes), as well as installation costs.
(m)Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers or provide service enhancements (e.g., headend equipment).
(n)Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including our network evolution initiative which started in 2022.
(o)Support capital includes costs associated with the replacement or enhancement of non-network assets (e.g., back-office systems, non-network equipment, land and buildings, vehicles, tools and test equipment).
(p)Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
(q)The subsidized rural construction initiative subcategory includes projects for which we are receiving subsidies from federal, state and local governments (for which separate reporting was initiated in 2022), excluding customer premise equipment and installation.

Addendum to Charter Communications, Inc. Second Quarter 2023 Earnings Release
Page 7 of 7