Charter Announces Third Quarter 2016 Results

STAMFORD, Conn., Nov. 3, 2016 /PRNewswire/ — Charter Communications, Inc. (formerly known as CCH I, LLC, along with its subsidiaries, the "Company" or "Charter") today reported financial and operating results for the three and nine months ended September 30, 2016. On May 18, 2016, Charter completed its transactions between the Company, Time Warner Cable Inc. ("Legacy TWC") and Charter Communications, Inc. ("Legacy Charter"), and Legacy Charter and Bright House Networks, LLC ("Legacy Bright House") (collectively, the "Transactions"). In this release, actual results reflect the operations of Legacy Charter for the three and nine months ended September 30, 2016 and Legacy TWC and Legacy Bright House for the period from May 18, 2016 through September 30, 2016. Pro forma results give effect to the Transactions as if they had closed at the beginning of the earliest period presented and include the operations of Legacy Charter, Legacy TWC and Legacy Bright House for the full nine months ended September 30, 2016 and three and nine months ended September 30, 2015.

Key highlights:

  • As of September 30, 2016, Charter’s network reached 49.0 million homes and businesses, and served 25.9 million residential and small and medium business ("SMB") customers.
  • In late September, Charter launched its high value Spectrum pricing, packaging and brand in certain Legacy TWC markets, including Texas and Southern California. Spectrum will launch in additional Legacy TWC and Legacy Bright House markets in the fourth quarter of 2016 and in early 2017.
  • Third quarter revenues of $10.0 billion grew 7.4% on a pro forma basis, as compared to the prior year period, driven by residential revenue growth of 6.7% and commercial revenue growth of 12.1%. On an actual basis, third quarter revenue grew 309.6% year-over-year, driven primarily by the Transactions.
  • Total customer relationships increased 279,000 during the third quarter, compared to 269,000 on a pro forma basis during the third quarter of 2015. On a pro forma basis, customer relationships grew by 1,261,000 or 5.1% for the twelve months ended September 30, 2016.
  • During the third quarter of 2016, total residential and SMB primary service units ("PSUs") increased by 409,000, versus 669,000 on a pro forma basis in the year-ago quarter. The year-over-year decline in PSU net additions was primarily driven by fewer residential voice net additions in the third quarter of 2016 versus the third quarter of 2015.
  • Third quarter Adjusted EBITDA of $3.6 billion grew 14.5% year-over-year on a pro forma basis. Excluding transition costs in the third quarters of 2016 and 2015, Adjusted EBITDA grew by 15.1% year-over-year. On an actual basis, third quarter Adjusted EBITDA grew by 328.3%, driven primarily by the Transactions.
  • Net income attributable to Charter shareholders totaled $189 million in the third quarter, compared to $2 million on a pro forma basis during the same period last year, driven by higher income from operations year-over-year and a $71 million gain on financial instruments. On an actual basis, net income totaled $189 million, compared to $54 million during the third quarter of 2015, driven by higher income from operations following the close of the Transactions, partially offset by higher interest expense.
  • Third quarter capital expenditures totaled $1.7 billion. Excluding transition capital, third quarter 2016 capital expenditures totaled $1.6 billion.

"Our goal is to be a superior service provider. Charter, under the Spectrum brand, provides high quality products and service at attractive prices, allowing us to grow our residential and business customer relationships," said Tom Rutledge, CEO and Chairman of Charter Communications. "The integration of Time Warner Cable and Bright House Networks is on track, and we are beginning to implement the Spectrum brand, with better products, pricing and packaging. Improving our service operations in a way that allows consumers to recognize Spectrum as the best service provider will take time, but our proven operating strategies will work for customers, employees, shareholders and the communities we serve."

Read full story at https://newsroom.charter.com/press-releases/2016/charter-announces-third-quarter-2016-results/

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