Charter Communications (CHTR) 1 May 202020 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by and welcome to Charter's First Quarter 2020 Investor Call. At this time, all participants are in a listen-only mode. And after the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions]

hand over to today, your like Anninger. Stefan now the to conference speaker I'd ahead. go Please

our and morning Call. this found Financial that Investor Charter's The accompanies under on Information be section. can Good call to presentation welcome first ir.charter.com the website, quarter XXXX

of I in number our XX-K including most factors we SEC are proceed, you and there cautionary recent XX-Q morning. like filings, would Before and filed also remind other to that a risk contained this our statements our

review factors risk cautionary on not other will We this those statements and call.

However, historical reflect we These read plans them concerning forward-looking remarks may subject from statements additional Charter results. Various and results in on carefully. update revise and only and statements make predictions, forward-looking make this encourage future. to management's you view risks expectations, statements. no to that statements that or to we statements forward-looking are obligation prospects undertakes to constitute forward-looking uncertainties the such call or differ Any anticipated to current or actual cause

today's comparable titles course and Winfrey, During and defined referring measures non-GAAP Charter rates we note also be CEO, to calculated On that call, unless defined These have not will similar on other Please measures, and we are companies. and CFO. Tom as Chairman Chris by all noted call may the be basis, call specified. today's earnings with as otherwise presentation in growth Rutledge, in this on measures, our non-GAAP year-over-year used a our reconciled by of materials. to the

Tom. to let's that With over call the turn

Stefan. you, Thank

economic been our by for Charter, we together let as local those we extremely social the us COVID-XX First, on who express me at and in health, behalf our serious of communities an endure crisis. serve, crisis of concerns impacted have all

call the our customers. of are we're customer functions and this trucks, equipment interruption fully and remote and our across and remain customers our our work a new focused stores, homes, enable connectivity our provide functioning country. in Charter's We both We we've support our Charter’s We're of centers, to service communication operation working, and services communications. to our employees been distance time. households learning, businesses, and telehealth of family able dispatch enable remarkable. in importance how on deliver including role without for to customers services network numerous customers centers, serving services and social as hard of their the keeping company all been and the field, distancing, employees services provider retail dedication and XX,XXX existing we has proud at that connectivity where The which communities know

during We as June for offer connected the offering In free who this or through effort are part to we recently do educators, not a crisis, that days XX number we do committed of mid-March to to for have availability pledged XX. of Internet We this extending subscription. our announced things. a households of Spectrum Internet Spectrum to America keep students already with

the customers families April. approximately helped will the XXX,XXX with students this connected remote added in under many teachers, XXX,XXX March of As approximately and and more offer schooling have end we XX, year, installed By this that we their learning. through offer, expect school of continue

residential to who committed related economic are For or not customers, business COVID-XX or collection also experiencing suspend for we days, XX activities, medium small terminate service challenges.

the XX. offer of extended June also this availability We to

major U.S. and have subscribers. over services, Angeles. and the Additionally, whole York that Los access million connections, from to we've healthcare our for We've information. groups and bandwidth footprint Naval institutions X,XXX prioritized public and to video new upgrades donated opened use WiFi hospital people of our educational its also announcements two hotspots fiber opened we've for includes footprint public to service requests government, local ensure our News news across run has New new websites hospitals airtime XX significant quality Spectrum And and to in high and

essential been employees self-installation. protecting working social provides keep guidelines field service, working to centers operations the same aggressively that our altered We've work. while significant learning, at employees. by connected remote We've America percentage a our and protocol, moving including our employees, Charter to call customer in of we've time, between distancing also instituted enhance and those enabling for

We've illnesses, at two to benefits. while the taking nearly So we're time paid employees to of employee necessary the we COVID an to an days with issues, time including for an for caring providing operate COVID-XX safety our dependents. flex promote full capability, of related our additional weeks additional We're also we to We've when for precautions every XX and other implemented of ask children self-quarantine. employee outstanding continue employees. related address sick COVID given related

$X.XX operations a In by hour to for wage service center and early employees customer April, call February. increased field we all back per hourly our

also two the to committed hour our for workers next years. $XX over raising We minimum wage an least to hourly at

days in laid or of furloughed. direct employee employees put has announced will work commitment like hold, paying our been no off employees business whose are on we our parts to to and sales, We SMB be that for residential reinforce and XX

the committed we to excel able a that ensure will our recovery. are economic mission that great business employees have We eventual through to with and

We We both and first and added driven In continue the residential quality by we of demand to XXX,XXX QX a good customers. our now. through Internet quarter, operationally, perform quarter, for SMB had well products. the end higher

customers, of residential in increase an speed. upgrading their saw also number business and We the

result outsized digital workforce, and years the high have over the a in Our the and made been saw demand the our in last and to self-service investments we automation, of online our and has self-installation insourced integration several we significant and onshore that sales quarter, systems platforms provision our program. ability quality

quarter at today. beginning the to the to of XX% at accelerated fact, the sales quarter the customer XX% our from of we nearly self-installation In over of end expansion of XX% the

traffic XXX up month, significantly and also network grew over usage the customers In XX% quarter. on since March per usage data our Residential gigabytes during the fourth was quarter. for Internet-only Data over

are Our a gigabit. levels from capability. Peak well traffic per maximum below benefiting continually price decreasing customers remain

as other performed continue network pro than those as cable The because made make has in in this of the and plan, possible. to countries, regulatory and the in of gig networks other investments better made X U.S. operators climate well like of the Our investment significant everywhere. our recent rollout we've

together years, Over offer latency, multi-gigabit will high a compute provides lower XXG network, us invest as our lower communities plan, pursue will with pathway for nomadic to built speeds, services With and to customers develop customers. to MVNO businesses our and environments. cells, our mobile in small beyond and for which inside-out the in continue and our strategy, customers in the the by we rural density connect economics delivering in fixed, consumers to coming we powered our use our and cost-efficient home, and we wireless throughput network,

freeing be a look is strategy X,XXX significant The the for gigahertz FCC was use spectrum X broadband spectrum. we to of step America. move recently enhanced Our megahertz making It the up will in toward bold action a and by WiFi. forward transformational of FCC's

by our we quarter. flow and grew perspective results, our QX over quarter during performed by grew XXX% X.X% EBITDA We a adjusted first capital also the with free to lower back well cash combined year-over-year. expenditures, Moving from financial cable

customers' would need our of and demand strong expect to and business broadband people happens be service to income learn forward, and residential such impacted to consumers. speaking, from look months, ability that government that in impact we the As unemployment for coming have by on health what will product the will including we long for stay connected. and residential pay how work support as factors our Broadly remain and will home to the

Slowing churn. role and new household ability a customer activity sales growth, and formation both may slowing to also our also drive for new by play

video voice due also that in trends the and temporary in We recent and downturn. maybe an reverse wireline strength lockdowns economic to recognize

approximately SMB closed are of our many is those and temporarily. least more We customers million So SMB serve X customers business currently at difficult.

customers but previous be will faster rate It expect to lower enterprise more than and are environment. remain with customers maybe than our crisis. business stable will Enterprise tempered, recession result, are the access But more of liquidity. a to for take expectations. than larger recover, smaller and than growth likely grant less revenue installation stand have with to this enterprise a I most likely SMB. SMB growth to all growth this products that and our it also time enterprise the will as part but before be able our switch business As businesses customers customer less expectations and complex will for have in not revenue and our been growth

businesses, in medium back is business but which to by expect primarily we be hurt advertising which the been advertising and the of and inherently crisis, in still help will local have small us, year. particularly the political supported meaningful, half Our

So be the growth sales cash improvements our of and that adoption in operating rate But accelerates, revenue market are transactions what and for clearly we capital expenditure a number growth and anticipated. and help slow customer than service a less future. of as self-service now as whole, will flow will the delays there cost

crisis. as in a communities our operating We and as have basis, companies, that we position service value for in on significant also far believe is and efficiently we're better in a demand a most always our relative the than well, we're serving

we cover to in our through the and to potential impacts we impacts model, reporting that, know more our of duration don't the XXXX the social will liquidity distancing, while be but our and Chris scenarios. and clear detail, want business I balance financials various of sheet tested pressure depth

remain Our have always analysis confirms that we we positioned. believed what well

will expect customers very believe fully our and the continue investment continued assets do long products we have shape and in employees. we our in business the our those term assets, and and to Overall, over we the given to good well, be

the customers Chris, I'd and regular customers we of for strain and delivered, gratifying their crisis. respect, this with the millions to compassion hard great beyond continue dedication to treat like and positive from Before their is we've received above and deliver been to The easing go our continue and well over through for employees very to support services. and work diligence They've families. feedback products and our asked turning Charter's duties thank they've and call to

lot our but know side of still of we for to our in deliver a We for that We what will the continue am work risen front and come America, of we how of way. to us, have crisis. other I comes and heartened challenge, strong will have customers by out this the around regardless

my remain those safe send listening and regards to to and to your best call, and this may like wishes also you all I'd families of healthy.

call Chris. I'll to Now, the over turn

Tom. Thanks,

were and company were results in U.S. strong quarter a where the here first COVID-XX reflect Our started before we heading crisis the as

year prior increasingly customer the each versus increased cash month flow efficient additions given our the net operations in relationship and customer we growing and quarter, strategy operating quickly. driving of were residential Our first free our friendly

X.X% grew growth Residential been and declined revenue in primarily SMB by the side by by similar by seeing PSU of revenue quarter, we've Navisite pressure bundled in mix the the wholesale driven Enterprise from accelerating by trends relationship business. and sale X.X% driven quarters. of several video over X.X%. grew revenue by continued year-over-year, the

and tower cell by Navisite, enterprise X.X%. backhaul both Excluding grew

First quarter by political. revenue advertising X.X% by grew driven

revenue primarily year-over-year. totaled In quarter the related being million $XXX In Mobile declined by year-over-year, device postponement revenue revenue. advertising total events. with softness, March, of due X.X% that abrupt sporting million including was month the revenue to of of COVID-XX consolidated non-political first up $XXX XX.X%

that expenses had content we've and driven programming sports in from seen connectivity X.X% Moving X.X% expenses the excluding year-over-year. Cable faster regulatory X.X% decreased we million and same and quarter; rights revenue prior of $XXX relationship year-over-year, benefits to quarters operating a grew mix million this year-over-year, talked or and expenses by X.X% $XX over million the volume payments. in considerations $XX excluding that's by quarter. lower by operating about increased the by year-over-year and X.X%, Regulatory mobile expenses non-recurring Navisite, benefit also despite reflecting and fees operating of growth. Programming total grew produced or timing rate, first

incremental compared service for accelerated million debt $XX XXst. expense of estimated COVID-XX That to COVID as bad roughly of X.X% customer as $XX X.X% includes by increased well benefits, for customers wage increases relationship Cost of year-over-year, growth. impacts March million and hourly as recently

to declined years, expense QX debt by service bad Excluding X.X%. customers both cost in

operating commissions. And cost. We increased X.X% by labor totaled device customer continue service by were $XXX comprised year-over-year, relationship Cable per revenue, to higher acquisition marketing costs of and lower and expenses mobile meaningfully tied they MVNO cost and driven expenses. to expenses and cost device our usage mobile million

capital quarter, in the Charter Cable million. In to loss grew by X.X% EBITDA total, grew million mobile, flow, in X.X%. $XXX $X.X the of and generated year's $X.X EBITDA our generated first first free including cash expenditures excluding shareholders by We we $XXX last net income free billion. quarter and when quarter. $XXX generated adjusted billion in of We about our we attributable of mobile cash, totaled up billion EBITDA $X.X consolidated cable million adjusted investment in versus

million During $XXX an billion totaling per at Charter and Charter the price repurchased about shares quarter, common $X.X of we X.X share. units, average Holding

our by in months. first Let X.X me grew impact by or X.X XXX,XXX. by Video X.X% months close offers wireline, XX,XXX. first of briefly quarter, of addressing the the last and million over to Internet grew than was XXX,XXX also and the or XX,XXX, before first and year's detail. to residential customers total decline more Including by X.X% last quarter of Including to quarter, XX,XXX outlook our results and relationships declined better We by in declined last decline quarter better business turn by programs. relationships by SMB our the quarter. close which XX than customer residential COVID-XX the year's the customer In last and customer related million XXX,XXX XX we over in SMB, voice in

relationships, total mid-March, on sales had and temporarily demand mobile self-installation year-over-year, and our due time were products, orders all practices net been partially and accelerate. customer and the we channel distancing as retail increased significantly mobile mobile, throughout has instructions shelter-in-place social better additions internet net February, our less continued to focused country, Through impacted. additions to By call increased for but yielded video

customers. our of and a COVID-XX report provide expect for for introduced to to provided continue quarters investors mid-March, our on materials, couple programs the an addendum Also transparency I beginning we in related each today's these. we for related offers three and of COVID-XX showing customer In addendum offers the this we'll of counts impact programs.

Internet offers of educators or total we grow day students for accounted it Internet in the in April. of pace quarter. end connects, three first with in still household. XXX,XXX The our the At March, number of had in the XX in and the additions continue is offer XXX,XXX new at Internet to pending net customers the for customers for launched offer available free our fast offer large We and mid-March a of a customers

for in flagship Interestingly, with of XX% to the and billing. low-income a second, gigabit our the offer subscribe some days, megabits who second most of and taking similar phone us these customers chose the customers XXX our or very profile indicate acquisition to of uniquely, no per The at product additional per trends the X will of about who these of customers customer in time, offer already profile video participated payment is minority of and and order our customers after customers to customers March small these our longer and at XXX immediate products remain. premium typical will stream, while to Internet Internet that ultra subscribe XX services same megabits majority the offerings. The to these these vast of some or are took

pay for The inability who FCC. for reflects the offer our connected reasons. our customers pledged have customers XX are COVID-XX second to day of keep the related These category to indicated under Americans service customer

point residential normally cycle passed customers collection cycle, in in in give are this normal current, were have color, where fully made had total, only have and who program. approximately we've As been of of -- which in March today circumstances, customers XX% disconnected March have the XX, XXX,XXX X,XXX the To many into a program, in full this nearly at would which entering collection of some XX% partial and balances payments XXX,XXX their this or service XX. protection the

April. However, have beyond approximately of point balances XX,XXX those the meaning customers disconnections, past-due end now at of normal the of

has in them expect protection payment with continued to customers their grow impacted COVID-XX to to QX. of objective and get grow requesting fully good of April, work back a through us. We the service in rest with continuing of customers the further with number status, The these disconnection it to we intend

SMB while level, final or in suspension until have of are operations of our and the our these reduced restaurants, category closed are where addendum, downgrade customers The line requested reopen. of isolated temporary customers their seasonal diminished. hotels fully monthly Certain of to a minimum we've service bill, customers and a a reduced who service, good examples, service or bars we've

also grow in this QX. We expect category to

you programs and of year-over-year, quarter pace if a this dislocation faster So impact residential and Internet mean the and opportunity. even ARPU temporary First, our results, all what these subscriber exclude grew our does first relationships long-term risk? customer back-end beyond that from remains at offers

or move out between Second, as the these contracts time, expands. in, economy customers categories may over ultimately and

Our issue be is ability will not how help them over and products, pay it our demand time. that our for respect customers' in we to

and sense economic until the we our the the us the what offer we project its it's like. of to duration better crisis for have So, depth and a will help customers for COVID-XX difficult look impact,

However, over customers continue long term, well. up creating treat we value could as and we more our we our think employees to end the

see our to reaccelerates. and economy when as quarters, that opportunities months remarks it depending to pressure where expand and coming on in I'd mind, the relates and business likely the With Tom's over like how and outlook to we're

is without video in For related are saw also with of our our adds positive And and even services, COVID-XX up March demand clear at net offers. products in and and phone high, least value the and mobile residential Internet the quality temporarily. March, significantly,

the household impacted. formation growth of risk the Looking forward, be will

packages. be period what of employment payments benefits the to under over time, either if, when how their able wages Act and are stimulus extended can will via ability customers back other pay to you make or Cares get some again. other or And The they repay to balances issue customers'

to exercise. our here, financial provision, and provide are questions reflected I will bad transparency, presentation, shape. to our be quarters, and in all QX intend of recognition, and coming our customers accounts the So about business investors in residential reporting and begins kinds through and pay there can months our through economy recover debt go work expect in as When good will us, assuming the a write-offs, which receivables revenue unique really we we

and represented SMB us that estimate softness March, We half of the to where year our sales revenue. channel our on are or our back $X.X in In this of total of a began struggle downturn. force hotels, than X.X% billion the revenue is of been our and is has for we XX% sales, last SMB sales bars, that many it residential. which direct SMB contributor theaters in of see essentially less larger to customers SMB will than to restaurants, like, hold

with an are can SMB we We time, working to growth believe difficult our all in economic of and recovery. return customers this in

to enterprise We to segments new particularly in of customers' stable. other expect expect moderated and March we by in April, from retail short In for in term, services for services services, make sales growth the place connects to off be But to physical significant changes, climate. will willingness and add this taking the areas. taper be to base we government and upgrade new for saw and demand more healthcare new enterprise retail is which

retail difficult churn, benefit We grow in to the significantly higher short will it have enterprise in offsetting will term. sales, but be absent an new

by be For was double cancellations to the our advertising amount. expectations revenue variance group below than was more and $XX April due quarter our March second Spectrum will Reach, the that million than more challenging.

or events in economy clients to earn with an orders be back the year-over-year this out working a both advertising spend places more half there proactively basis. their won't opportunity up. is dramatic significant expect in generally. and move so impact as there to their are full move to sports recover different advertising back believe picks reach We audiences business, year, the political to on We from still We once the year spend of

truck cost long-term opportunities, all our says structure? activity, revenue already lower will more Those even but new that churn and subscription offsets SMB rolls, of Churn sales and declining all enterprise. declining which the churn labor-related crisis. residential, the short-term significantly Lower is services and what that decline, we level are calls, potential challenges service also across the are of in the and of before expected our installations, voluntary applies much now, commissions to was

first Tom curve platforms self-installation service, first where The As self-care portals up over the XX%, and accelerated quarter, are don't we is integration current for digital with up think and and off. the mentioned, now our part over investments paying back from and our of goes adoption XX%, it digital in of self-service utilization was. to prices has customers' XX% it

activity and would bad any of frontline, service offset higher to direct we tenure and lower plans of to CapEx, remaining to turnover likely some with previously business, less infrastructure our accelerated lower debt and the by and be slow wage potential outside shortfall likely and activity. benefits, which the spend of will increases decrease decline would churn, has timing delays. that self-installation, our So due think is cost will scalable construction EBITDA expected, relative cost to our than be hiring Employee across

will to What but we believe probably the the model, liquidity a can business flex. and depth like duration So we is how good our we manage how model the balance the transition we our and we various long-term. don't climates know, sheet we a believe It's and across recession, profile. business that's of grow

called March of In liquidity. with to we a our have for April long-dated XX coupons XX, modeling March, quarter under had we Tom low scenarios. $X.X those high beginning mentioned, the billion and XX, available we bonds for of the our investment cash and debt finished issued coupon, total early test billion billion grade all-time of billion various As COVID-XX crisis, tightest of the and XX-year a yield and We $X priced financing our balance at at on done Pro economic investment under tranches. of forma revolver. at recently ever $X.X sheet year stress $X.X we availability lot an of grade

XX end that As debt our respect we've slightly. cable at month the times if you times, net been EBITDA deleveraging X.X last already adjusted was of of only. to or In the X.X quarter, first look

of Pro is weighted and of forma years, debt life cost activities, is X.X% XXXX. recent average maturing only for the average our with debt our financing beyond XX% of our our than weighted debt XX.X more

XX We remain to liquidity free year's have our we markets, presentation, a to relative which on a maturity last well EBITDA. schedule Charter. flow, positive good perspective cable today's slide operations position in remain the to of puts profile which in organically, significant Together very finance with and as open our capital our cash through as

stock our lower to the relates XXbX-X was in entered into, here we plan been share prices in purchased target we've crisis it COVID-XX March under March, U.S. April. in the began right which the volume before than to a Due As repurchases, more

cash time. we on think making can have encourage to guidance better over uses bad decision of provided relative because buybacks, it alternative We never

liquidity So to organic thoughtful think any organic our and may be we're stock arise. opportunities, which going to economy is where our inorganic or opportunities price, we the going, and responsive

the While today the interest climate and our continue target. short our X and leverage are range we monitor times to evaluating term, current suggest in modifying leverage regularly rate the market environment does caution and economic X.X the target not we'll to

and why and future well passings, every over our ready good and demand and to in our that both across network significantly high we years in We build know that and our which invested with is communities part our network bad, is is and there of ensure in the footprint, continue our businesses invested, more we've high quality local for we employees times aggressively product have for people broadband dedicated working across asset a homes opportunities. and out resilient

on to and Our for and across shareholder employees that we goal economic value operating strategy create to well, stay long regulatory proven climate, term. over works is the execute and do a customers various what focused

Operator, for we're questions. now ready

Craig the Moffett Go MoffettNathanson. comes our please. Instructions]. question with of from ahead first [Operator And line

is line Your open.

yourself Hi, just that sort strength that thank results to market, relatively kind you enviable the that sort to this and some you of for dislocation move faster dislocation, we of as you business a do, edge-outs, to come how in do bigger what and moment, stronger, side out more are of things take I in spectrum this take think take the whether wanted find picture wireless, your having this of the of the a can about it's that share a potentially disruption? the of you. in advantage of is resilient make a acquiring business using question acquisitions, a way position given in a when trying your other

doing that it Craig, and in be and well better we the well marketplace. if and to able we opportunity require cash is the have being to what better execute think just there and would about continue doing to that some doing every we investment. to continue an and day obviously we're on hand opportunistic, But, biggest and succeed opportunity see, is

invested have relationships, sell we create in we Our to of the relative advantages create continue customer properly is biggest and more workforce the terms have than company in that opportunity that can put well operating that and assets we we set a that that quickly. therefore, we think to that's value, a more and well our could we're to activity, continue the better and to forward quality, capable of at great we direct as have of upside, to we and generating that's execute together think biggest others, a others we've high at and extent going we high and and moment, products and skilled operate

being given about helpful. and that's now, to prosaic If thing? out RSNs question sports the could more just just pressure just sports like maybe you slightly networks of customers work to you, I can issue Thank see right way sort the the another, to payments you'd to the that paid sports of and ask to all attention national talk and rebate

cost. Yes. talked costs we've the reality the for the sports of bulk programming programming how mean years about Well drives look, and of I

look is creation is. for our in wholesale range negotiations sports average at not that for less you that's what customer. the of was of would cost, it per we're high on the half My that the guess the If than average, in customer $XX involved cost if programming planning cost be that of it that,

is would sports it. to cost product the for -- the obviously time difficult pay it's expensive cost and and is sell in simply, So have it content, major product because a paying to of makes I hard the a consumers The whole that, mean programming the playing, the love still effect very that customer, to of have of it just and reality the driver people is to be are back and to most about whether going played, will events the pass the customers. rebated occur. There or the games they to be costs question not if sports are we big don't the through paid likely, isn't a the if costs

I and the little -- and we this all we together over content. in industry very in tied So, together pay in have directly. at contractually bundled don't structure we time, It's have control a point how for

money point, relieved we'd love it the who are hasn't back getting at to customer be. that they our and and some So give customers yet. athletes if Ultimately, can to the has to up somebody their happened see it's and money give the

Tom. Thanks,

will we next please? James, Craig. Thanks, question, take our

Vijay Our of next please. ahead question comes from line the Go with Evercore. Jayant

Your is open. line

the be I'm kind network, orders I and in as for work-from-home there the conducive and is question it's side right And started seeing and us you are but that the from on sort you that now if of Thanks. think any? the resilient data network on thing, becoming think. any areas any from across your can simple on obviously, markets, stress for then to business? transfer now, symmetrical some of to a direction help what any compared Thanks. start assuming that sort up of highly not is other more sort the early about, right these your that is of and done, shoots, that and network Can country, of like needs you upstream green sort New are Tom, change exposure just about opening different talk states of obviously just of you lockdown California, the markets given have where how York

there from parts to differently is various different what's Well perspective. regulatory in parts on the the by occurring and practice allowed a of depending with regard country, are business variation what terms in climate country, preparing we're of reopenings to the of local obviously operate

an and essential keep the been to operating we've business, have whole time, As obviously our business we running.

we've that of we terms we in and employees care exist to how running take the conditions our it can So have care do how been we take our what of tightest and have to under customers. of

opening preparing places respond the are see as capability to we begin So our to markets individually to locally. up, we and local project to

of tell broadly can't I always New see and... place, is, a in from this differences any City's you to locked speaking, everywhere but can at York that been it's unique terms I another, until every way, -- in down location one moment but now we've unique

market share are growing We everywhere.

growing consistently are everywhere. We

quick able out. change handle Now to gone terms the future it, but -- spread thing lot it's the of we've and also load the interesting very been utilization, network one in of terms up in about in a has demand network the the demand on of and

You network your total to not build peak and maximum utilization utilization.

Mother's the Day from it's perspective. build a network So call effect

the weeks. a continue. that when been a going trend day every for in of now see you think expect has And augmentation it general and build in your few been one worth need the on absorbed what we as to for year's year, weeks, the time, we a built a quite network. long But bit has a network few and it's You we of of,

terms we communications think continues to utilization is, grow. have of what upstream including capability, the in And assets so upstream future an to developing a our we as pathway

of very to grow that's well than but to going proportional sort investment, to XXG, the continued also of X.X, it's So a from DOCSIS over significantly augmenting positioned do in terms called that and we ways it to continue networks investment that way in ways the a require we're we to even describe of specifications new call the smart we to to are envision, still it's build. create we capital down efficient rapidly and that's any But less products path moving hard capacity term, what perspective. brand-new our long think that allow are and

the. to have opportunities upstream them, a an new of great don't to problem, the we don't position have in the we But we're downstream to and realize to going think we benefits the from So make come those investments create problem in we have immediate are that places and and both products run. a in long

Thanks so much.

next Thanks, Vijay. our please. question, take we'll James,

ahead Our from please. from line Mike Partners. McCormack next of the comes question Go Guggenheim

open. is line Your

thinking I are more sports about thoughts, this rights mentioned FCC's year? you your know a recently. for on of maybe what in thanks. but rights, CBRS I appetite later briefly, this? question move out any the that touched coming change guys, generally, you value it know on way then of quick all Does Spectrum. spectrum the the Hey Thanks. auction on Tom, And sports your just just

the inside-house no. question, WiFi of CBRS? terms Spectrum are X that our products gigahertz wirelessly. separate of our are FCC's They're -- notions. answer really in the I spectrum; Well, affect the at good as spectrum delivered of valuation type you gigahertz look understand is saying your -- so all I X The

will So the at and CBRS high of X stationary or in-house, platform, spectrum products come look more versus a spectrum mobility that a new mobile is along. real of use at whole set use capacity the really behavior, for for we way issue really the it. The gigahertz the is for allows efficient least sedentary

affected externally could notions as indoors, be used mobile be them used for the environments hasn't and separate it view. affected we and -- well our other, in one service could hasn't enterprise it separate so and as and see it and indoors Although and values both

it crisis. generally play, the the forces come that my and and is back is existed the you misses know, same it bundle exist everybody that that leagues are valuable that glue rights, and sports extremely sports really sports view, it will Regarding the together, forward going assuming change, secular that holds shouldn't before an product obviously and -- on going trends the in

collapse I the a business, of sports complete So absent don't see a major change.

Mike. Thanks,

our James, question, We next will please. take

Our next with Michael Rollins Go please. from Citi. the comes of question line ahead

is line Your open.

SMB was scenarios you your frame exposure you I morning. customers in the how bad the and through of debt good running were quarter? to and the think if trying and curious could for some you the frame that Thanks. Thanks reserves

Sure.

Yes, go ahead.

can perspective, so impact I'd has mean, material to talking balance bit can and of that X.X% it's perspective. in Certainly, it's Mike, of you about still liquidity the get impact our on sheet have an restaurants just revenue the growth and was the in stats give providing hit think, I entire trough company what given prepared and like. bad, how remarks, people that the be could and of segment idea I so was I our revenue and it wicked a when put pretty for theaters bars, view take will the particular, company. on some It your doesn't for scenarios own an the that the that that of of SMB; of you're some little rate to inside some and sensitivity looks you how the long

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second question second was? -- was the first was The SMB, one

bad the seeing are you debt. How

new company debt GAAP as of every has receivables estimate that to you age. they bad have opposed modify requires the to period to which for your you standard, when to time, reserves at had a Well,

about We on existed not between bad so the And estimate million debt cable might We're accounts that an time everybody at be for $XX what talk payable heard quarter. had of receivables in the you've total different. close. no about of as mobile, additional that this

In objective. QX, let first maybe the back with me start

A, pledge. by as as off. goal quickly a by cut is our collection providing to to not in get case, also environment good the for Our remote goal this connected well for to through But all and into customer, offers this, going be of do education, is well keep them America

could to is some that debt SMB. impact of recognition keep that our going right-size quarter, second with a and over reserve. to of residential could customers. and they inside may estimate financed work a for receivable, portion need That in for And that QX, pay for we apply revenue be goal their will Our to some to impact that these time, bad the to the extent the of the customer back

the we're we're when be not so, deal QX in have a accounting remarks company and a true, revenue QX, and any sure what's sure But back the to lot we technical And with be the the make I prepared the going will disclosed bit going the long-term focused accounting little customers, we're going I that bad right on it's reporting going outcome or that mentioned outcome noise on and appropriate of but in for impacts QX of issues our to for look, impacts in accounting be end. in the that is we'll make does debt on to how to to focused reporting. any think and what's

a in what by that a products the those customers entire of I is lot and have residential our and and space they, have but always high can and look we sell debt. of the and regardless have and profile that get they're in that you the pay if created created, you taking bad bad across when kind work sell an good we And, creating, customers very we look product a and customers products we're going of do that's poor customers mix you income the fall obviously, if very at customers like have people macro and at where -- way sell marketplace. that's range, explanation. people have don't that keep And So, they quality to they rich the -- from debt to create affected to the that we I you climate, them you? look to we we accounting they're perspective, can The we've value they so they be that pay you,

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you. Thank

our Mike. take James, question. next Thanks, will we

Bernstein. please. of Supino from And Peter with ahead our next line Go comes question the

is line Your open.

Legacy question? Hey, than that drivers the this that about of thank territories helpful continues at what to other if you. customer of talked in length provide all-digital answer When analyze Charter any and I your upgrade the to data in we've the in-sourcing the you wonder are churn, performance all service? improvements the

we've quality churn has What's churn? for everything good Look been service. in we've service, steadily are with United coming terms of and and the down who consistent workers, the before that in products, we churn was our before, high excellent strategies having the high providing post-COVID trained -- States, impact had of high was done COVID, all capable of quality quality in-sourced

the and can per -- measurement less do to satisfaction. you if churn to have one is is serve value of activity, If mean, And you you cost have inherently, have activity and revenue or your serve. cost a ultimate lower your means activity. is lives, the longer products less customer dollar which if of have you you better proposition that that, margin drives that higher the I service generated, of

things being that's products a going satisfaction of that company those churn held of is. the means still It's because and are up, your is of going down, also nature, rate it mobility the in other your in your objective managing economy better is constant, been measure all and things if of customer but our and terms

allow is terms created, models because House of which point was you necessary transaction, is a type coming those businesses, because higher cycle perspective activity down of less than you and in down platform less digital that, for satisfaction, subscriber which in occur, to even calls, digital and you your So create and have the have and less was activity service process of models more self-installation platform, and sense actual less a less for satisfaction, we all serve very Bright itself, too the in from activities, extends creates less of of failure meaning that which you and churn if that you that dealing by all all missed and consumer us ease life legacy legacy to down flows virtuous keep the to activity. legacy have a reduces across appointments, Charter coming with Time and was actually the cost coming will longer, churn have Warner platform, friction

the to interestingly, due so work two XX,XXX created sales. That's new was volume So the XX in path last little months a and a by a we've on. pretty and that were we path days, currently broadband customers in I we're the It's done that of day, had on And activity the uptick it's lot still, the believe an customers days. bit in in confused last XXX,XXX under. XX we're in seamlessly. enormous we've We've that

you. Thank

next Thanks, Peter. our Operator, please. question, we'll take

with New Our Chaplin comes of Jonathan the Research. question line Go ahead Street from next please.

line open. Your is

that have the pandemic? current when of out debt, said to Tom then, business Two were the the changed. that importance we sort the that environment? think if COVID of you sports Chris, going business for is on some costs that for you, the wondering I trends is you ones, in throughout expected may. how I'm to you in but that bad the trend of non-programming Thanks. exclude changed, you the you the touch haven't secular the year, when impact down quick from of come of And different look a impact year-over-year mentioned continue you I the have would think secular the wages if and trends can

we $XX million Thank And impact the through it million COVID related we that differently or you. sort of go does as year? $XX then, and of annualize should flow

employed, permanently the have trend of as We just other -- those, with to down were when So the the did, and over into is that cost I but fairly XX%, very range, this think changed, way, with we're short with customer I is serve, the deal because change they're we I were advanced. a took model, to hit go know Jonathan, up trend fortunate everything I the in what down would one We secular to tactics the self-installation. result and on got road about and it permanently of say don't far started back we network we of of and when the self-service we we period the not line. And marketing original that. were had already years we time, of secular utilization and are able change. that we that and a and we were XX% and compressed we're may I it, at in it they now think way of actually Meaning, quarter XX% think going the moved self-serve line. to customer changed, self-installation

XX%, at to degree a get So of the XX% fact us we efficiency. with operational to already allowed that were fair

And so that prepared we were moment. fortunately at

think big for other change years that's environment the long in Zoom using I advanced probably in homes is I communications a people their a a think the going term. kinds But business and like forward of and by of two-way in number work

you And Jonathan, go -- ahead.

structurally years this I was at because margins on or you we How higher year are for and to two from what going get to do say, that? when maybe XX%, that XX% out is follow-up going just environment? that of of probably Chris, does in margins a this a much directed

to cost is a discussion. installation a a get OpEx that about and I percentage is. both self-installation margin type it the of on third ensures to benefit professional what and want CapEx, cost don't of into the Yes, a depending of of of But install the

have were of the mind by at end the acceleration. But we been So it's that keep at absent XX% XX%, significant. already in quarter, we would the

advertising question was the to marketing, enterprise call field customer really and service expense, there's expense. expenses which and operations, to cost about operations so and provide is is operations is customers, residential SMB this, centers cost to Your think service second to I prefer in there network There billing. on non-programming

is continue that what it And past That excluding cost a I've cost per that to would I and been cautioned as going in I of gross decline down also we're serve, committed gross serve the relationship that basis. to as was debt to bulk our costs. prepared the I've to to to bad on leaving know down cost, that bad hesitant the relationship in remarks, per mentioned just to is, year-over-year absent Just a in dollars, the decline, side and was basis. say dollar

inside it and do sales month. QX given a Clearly, of high -- would've has transactions move we April, slow April once transaction the we year-over-year been that beyond get that activity -- transactions think expect all and different down. start will We to and churn service of

excluding accelerate debt, per the bad And on relationship certainly a serve that declines so basis. year-over-year, to actually could cost

the are they an a path increase month and think a was putting labor quarter because there $XX there our in to trends and already minimum Tom for on, expense. good amount and in the I continue company we half the the that -- was $XX that wage expense, the of of is So, accelerated really a million

at annualized get rate. appropriate will the that yes, So

our and dollar fully small think of strategy amount transactions and helpful a acceleration to that, and that's think I our for very self-install amount come for the employees, relative not out of of self-service making and operating I just But viable all of adoption funds the that the stakeholders. that but are the business

Chris. Thanks, Great.

Jonathan. Thanks, Operator, take next we'll our please. question,

Our comes Stanley. of Ben question with ahead the from Swinburne please. Morgan Go line next

Your open. line is

buyback. the and talking that you wondering ask you've cable the that, regulators think seeing, if that that the news in you just been that lots you've been politicians. and then, I'm which prepared you sustainable were conviction comments with you and time you is the because in made just been have historically both not best benefits and real reputation sort the obviously been business of I two I being reputation any a looked with I'm have through cable in customer about capital morning. of has historically for of breaking and at? sort long the the want even company allocation lens to sort And Chris, about of had good company behind operators don't remarks. And cycles Thanks, data Tom, reputational mentioned the not has or to say

opportunities. You mentioned organic inorganic or

so could a to of little Just things historically interested kind of flesh take you being your talked that us in bit or we of interested either kinds the framework just M&A wondering, out sort a just about you and have minute if not can comment more. guys remind of

Thanks. willing? you're If

cable -- it that I've great loved I it and Ben, I've consistently. thought Well, always the things what done And does. always industry and has

we you you particularly The year itself average of we've business, the remember just upsides aspect of was, video, and rules. has $XX month, integration was about transform costs, at vertical when it's of years on AOL likes terms you Nobody of the gone about in programming in been had you dial-up industry think I phone paying been bill in industry created the has that the years if benefits wireline and competition divest got -- the consumers. the what reputation, tremendous the nobody our telecommunications it's of since of broadband programming in a our the bill way had think New cost bucks cable per-gigabit that then cable York XXXX, outputs Warner, to paying they today rise the $X.XX. the look cost down of the for Time of always $XX difficult the basis, ago, since if because investments for As essentially, acquired dial-up, and XXK. broadband cable likes that's XX their have a a telecommunications was made XX area, satellite and ago of And think and

has they've at a a-la-carte don't of Netflix have massively, direct-to-consumer the business so and to the video the video, cost I in the consumers rise -- of prices pay of video negativity they over forth, think and competitive so legal increased and think customers I and but they biggest power cable and The so lot pricing had have that's Home want up. want -- and now some Warner our because extent monopoly and programming that the to Media is to have it's a programming programming business a Disney of buy in you been is breaking which copyright, a and and driver price like

really communication based consumers. relatively think done that have look really producing when have we objectively, we I'm and the job and our competition at I that in of you model about great it services the has facilities things quality high status So done optimistic a great that think I really country

the is inorganic Nothing on would things organic as do today. others I family think price we be and or that that the that can, right inorganic hands, all Tom in opportunities would actionable our the more as controlled the but framework, M&A cable we side, which day we will past, also hasn't mentioned, -- with that. in just of been cable. probably case the who will owned not mostly on and means so as on be side, on the of That Tom has that the we be well about tack-ons, long that the side Then some the frequently M&A. means as decide the in way we prospect At love hands family, bigger do acquisitions. think has They changed the talked are about

we've if to capabilities. and looked on around matches We content well really there's all our the we us, been environment, found up than this about has of Other have see anything asset. and side, that of thought assets haven't big anything with some the local wireless. a lot that makes for sense in a organically a particularly news We've expanded lot to that and it

or ability sense we found haven't lot made scenario whole the the that I attractive the that to for MVNO for have, that cells, deploy we have, assets the us think a we in of a industry. small

whether whether really can but particularly impacts accelerate or balance it's to going our some growth, liquidity. There to sheet enterprise and be that's growth those up They a to to and in none accelerate are wireless we've cases look be minority the on made but technology, where advertising, that Same that of joint be that's materially are ability we some not great something investments would apply those Comcast. material. segments at take in with to and the hopefully, going will for business shows of

cable point else opportunities leads probably stock something between add, to can't up he'd back of if something your unless the stock, has else's think I you more at you buying which All is that buy got leads some got of somebody ended the in Tom future back to in organic and is organic the and have where -- and meantime. think we you we

both. you, Thank

Thanks, Ben. James, will next question, take please. our

please. line America. Our next question from of Jessica Bank comes from Reif Ehrlich the Go of ahead

is line Your open.

the the customer renewal year? HBO of finally need the does In I wait I customers? you could you're HBO? of new or Do of offer for Thanks. talk to any was NBCU have terms doing way And wondering, the impact I some for AT&T you talk think the offers Peacock? then just you you you for saw something maybe if your at for Sirius. Could offer offers plans promo end would that sell about about with

a hearing. hard had time I

until -- question And the extent new package that was run I think And way happen impacts the renewal. in that first was HBO that Peacock, question trial now the third needs it that we to including, -- then any could to marketplace we've wait or there. or the the HBO product. the needs the the the Max, the future offers and whether second So out sell that the the to was Sirius was

is tactics time, what the ability one our offer wouldn't -- announcements good strategy, so do with succeed -- are have those in with of any them. them, and experiment of the about I products to but disclose it's your might you before not employ. We ultimately prowess, we future all we But we sell and to Sirius and through and terms we the minimize do tactics marketplace. that's that offers time. they marketing have marketing But and In affects worth we cost our various experiment don't that

haven't discussions of NBC have Peacock, concluded terms we In we yet. ongoing and with anything

our product we're In customers market terms new forward we're and of look to just offering. the part completed HBO And as to doing agreement of HBO an to product and the have overall going Max, our who video convert with then that. we AT&T, new to we going

Thanks, question last Jessica. our take Operator, please. we'll

line last ahead UBS. our John And please. from comes the Hodulik question Go of from

Your line is open.

make it I'll quick. Great.

two just First, I ones. guess quick

come as First, I could XX% April what it's what previously said March. the twice Any Thanks. on in it in you is – Chris color on will – – think were – so to that March intensity. could on of and you the guess Is guess I April expected, you likely give magnitude up there great us advertising you give or then going CapEx the twice saw color buckets be any and than mean variance change already advertising that given how too? I is is if question, lower there? comment sort said And the down of which the in you quarter the capital any lighter would on far shape you on you outbreak,

percentage to I So the our, variance April what -- have decline year-over-year, would that the was comment made expectation. was and the it to really related the really not been our

So March. off sold, come already books. the in we literally had $XX came the off It was million books

will trough recovery books to June maybe that, for how on they the So back. April. We be off that in come probably the occur, April, openings came and depending over small, in think twice that start May start

It's that So some but top We advertising going at growing, there'll the for is demand on it's of on a business be been be there has come think business, big has for be rough local, been to advertising. not pent-up core will of growing X% going X% pent-up demand. which core things our year-over-year, our us a be a QX to quarter. online, rough as back part to do advertising

bit market health the a takes up, of which will advertising, political a out full-year have of collapse lot whenever will sting the little to point, year a and the the recession the takes SMBs So bit of inside half and for opens to when when little and back seeing the that perspective, starts rougher open we're distancing back the of then or of back up be QX. the the QX of tied -- a that

unique about side, there. CapEx way I that's it's think, nothing there's too The us early. And

different we're all that is delayed. slightly that, at on the a point we've had, Construction think focused this programs be slightly right lot there delayed. been of it is the could possibility be now might we've signaling of and activities I some that

certainly lower volume installations. The installation mentioned. unit to Tom hand, of doing cost, We're very-very on hand. self-installation as lot of the one be lower, going on is a Your because high CapEx -- a other because

to spend. parts had we be of there, will lot probably if a amount dollar intend there's we moving but to So, that the guess, slightly relative off I to

much moving take the could thinking Craig very strength the of we from the are accelerate the mode the even and strength we what be beginning given reactive sheet spend, that Q&A, at we'll our business proactive do of the that a advantage term there how our asked areas could into very and I -- think balance of about to to assets we a have. the more longer things of are

want than looks to amount spend. I other prejudice that to right probably So, now don't we intended would much minimal to like it on, and dollar slight than lower we path be the too say, it are

take automatically terms commitment products building, the building continuing would it haven't by capital say and the so really, it's the But of our changed we lot we about our and success testing projects capital talked The to spending that a in about based, and of pressure modulated we're creation. forward. is, we're customer is I thing and business to we're that

market the that so around And so moves macroeconomic based does extent to effects, the the on capital.

guys. Got it. Thanks

our Operator, that call. concludes

Thank you all very much.

you your for does thank conclude do today's ladies We And call. participation. and gentlemen, this

now may You disconnect.