Charter Communications (CHTR) 28 Oct 222022 Q3 Earnings call transcript

Hello, and welcome to the Charter Communications Third Quarter 2022 Investor Call. We ask that you please hold all questions until the completion of the formal remarks, at which time you will be given instruction for the question-and-answer session. Also, as a reminder, this conference is being recorded today. [Operator Instructions]

I will now turn the call over to Stefan Anninger. ahead. go Please

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

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

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

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

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

our Chris On and Rutledge, today's and and Fischer, Winfrey, COO; call, our we Tom have Jessica CEO; CFO. Chairman

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

Thank you, Stefan.

positioned for to our at advanced future we're underpenetration offerings, our product grow our plans I business well the As of rates come. at many our and network, very attractive years current look to

low remain added current churn remains due quarter, due connects to behavior. year-over-year low improved, while connect XX,XXX relationship And challenged Customer environment. Internet customers. we lower the to the activity the activity consumer During very

strong growth additions mobile to with yet. of We best our line quarter very net continue see XXX,XXX,

as and nearly total quarter, of our of year, X.X the mobile we've XX% the lines we grown last had lines. the Over million by nearly end mobile

very developing we and household still of within is opportunity and of the large, we're business. the Today, mobile wireline on footprint. beginning connectivity at Our mobile spend in our only captured combined XX% that

opportunity And the remain thousands and in of serving significantly the Wi-Fi, underpenetrated we're fastest front and mobile combined dollars in saving delivering Wi-Fi should us. the all say, fastest speeds while versus with So the I customers, a nation the Internet the fastest year. customers -- when we of speeds

to majority network I virtually offer grow network to usage manner. focused improve connected million to customers connected a are which close connected pace. wirelessly. the to remain Internet also we per and from have continue of the we use on XXX fast us expect to our devices Ultimately, continues in fastest To connect nearly us wirelessly. cost vast buy Data time-efficient to XXX Today, our services, that most will do our who to month. not network, the evolving our video speeds devices all gigabytes at traditional

per month. data downstream usage XX:X those of a a The at of traffic. ratio terabyte of upstream or still XX% Nearly traffic use more customers dominates versus

customers using be the able bi-directionally infrastructure. downstream. speeds and capacity to to offer multi-gigabit split plant higher us in expand allocate we're spectrum X.X speeds allow upstream, more the turn, we'll which In the In symmetrical near-term, upgrades, and our all bandwidth existing implementing to our our DOCSIS

at in converged highly X.X, connectivity a we services attractive the includes network to evolution a most compelling network time-efficient maintain Our state-of-the-art advanced path manner prices. and that services offer and capital also delivers turn so those DOCSIS can consumers

grown We've Executive as available Xst Chairman. become years. XX our investments last the I will everywhere CEO personally to and connectivity today new I know, that time, plan step become may fulfilling over and CEO, Winfrey position you down Chris will best through December on we to our It's As innovation company products the that services provide strategic and Charter operate. Charter lead to been

the Internet of to evolved the career Our networks. broadcast broadband, during from and I products robust multi-channel the began And bring before. carriage the when to world to and grow and early to greater changed wireless signals development new and today my now video from our days have voice of value continually cable of and consumers uses networks to our ubiquitous innovate opportunity continue than ever drive fully offering connectivity, we is for to

been our Charter right to with closely the to the CEO. pivotal awareness heights. past in worked both more in know to market expertise over levels. both organization years. demonstrated He's growth serve insight have at to company highest He in and and strategic XX for perform be and the key next will and industry a to Chris our success Charter's finance leading operations drive the and repeatedly new vision XX Chris' choice with than that he's Having leadership years, I skill

And over with turn I'll Chris. that, call to the

Thanks, the Chairman. Charter to to has do the to us and fortunate as incoming and Tom, that Executive we're reinventing over to mentored CEO. he's here His also a of and been create our the exists privilege I'm continue does us same for keep years. learn honored work to the help grow the and Charter and continue for cable XX value it Charter and is as shareholder Tom reason kind words. opportunity past It today, here about he'll at thanks for of both the all all from excited leadership to as

market I'd covered give Tom additional color. so I So the quarterly thought headlines, some

additions While move are that improved year-over-year churn issues churn were lower is that remains quarter. level our and Those also voluntary churn year. at opportunities. far were Non-pay third lows net pre-pandemic slightly activity by last all-time our driver low. remains and from The below largest market Total remained levels. and reduce for they last well-below quarter, Internet selling

similar both across similar footprint down few to quarters. we've in past also gross what additions the remain seen by in areas, While some the amounts seen we've non-overbuild and improving trends, overbuild

instead a terms the competitive fixed gross impact, new entrant, we In some to additions conversion us. relate of lower wireless of to probably coming see to going of DSL

issues with issue reliability to confirm no trends, seen the the fixed their back similar also we customers saw, past. of footprint, from find us fiber small what the scalability Given long-term. product way We've pace overbuilt and we telco over numbers a different and those expect mix to usage Internet reported newly a from wireless

a market several I quarters, small effects. the COVID note seen to that of reversal would service also share mobile-only of some return past over amount we've the

and in fact. moment, eventually the XXXX, up, Market of a Internet unique opposite in volume and will one adds. transaction we're in So the XXXX will pick our we so saw early net

saving record thousands meantime, growth of good the mobile In That growing for broadband. at dollars. environment is by we're even low volume also a in customers rates,

we So well remain positioned.

and Our and this offering fixed and to that. launched Spectrum exemplifies converge month mobile operationally, earlier our broadband X technically services continue

As drive cost Tom path of And I've our XX a lower we mentioned, operating years Charter can a pace developing per sustain for role service played been relationship we And competitors. growth, strategy. years. over years. significantly have our customer almost for XX at revenue in in at key much the good speeds, I've for and at higher lower to industry faster a cable than and much cost many

return and for and packaging So strategy a levered our intact. equity remain recipe products, service, shareholder coupled better will creating pricing value with through

details transition taking the including plans. evolution date, expect schedule a I good in customers That's next transition a the following years, and both so transition plan, the the few service on with network do a build-out to At for think, December. this I lot I the time, be a to update and us, same we'll that community for CEO over CEO of and investors will virtual investment in market opportunity the place what cover, to convergence capabilities, rural expansion look event forward for with experience our our

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

Thanks, Chris.

to today's include our discussing Initially, third great Hurricane Coast the customers results quarter and mention did not want Before reconnect results, power a they late X related lost in worked hit do crews Ian, approximately of repair September. to million to East because network and that but our primarily I of impact hard service, job. outages, which customers, our any our

the be fared plant of related and expect very our the impacted fourth and time. credits, customers despite numbers quarter incremental period CapEx relatively Broadly financials expect we related cleanup some incremental and storm to Hurricane replacement results nearly customer while speaking, short to our expense store destroyed labor, will some And center small. some to was in service Ian of on all plant to to bill overall and our operating we well call contain impact

following quarter. a XXX,XXX, reduced by a service. turn customers our five. second despite SMB, Video and in lower $XXX,XXX drive record declined the customer voice pass-through third in XXX,XXX mobile attractively quarter, we third added from customers activity continue in high-quality, slide our results we Wireline and opportunities residential growth to quarter. with increase levels, priced Let's on by Including declined of added lines the mobile the Internet programming XX,XXX to selling we the number

X expect accelerating drive growth. to forward, we Looking Spectrum our offer line new mobile

results, Moving starting to financial slide on six.

base. revenue adjustments, offset year-over-year lower-priced customers, quarters in grew Over last relationship or accelerated of several and expanded was the with non-video per higher losses growth rate customers last mix X.X% customer packages video year-over-year. by basic higher our within residential rate by flat Residential year, promotional $XXX,XXX video step-ups of the a and

revenue not factors that versus in year-over-year growth year in residential any mentioned. than of customer ARPU given mind this last, reflect and adjustments per mobile relationship the quarter I last does just Our revenue. timing this lower keep Also, was residential rate our the mix

residential As shows, X.X% slide by six revenue year-over-year. grew

SMB when to prior X.X%. from grew was some one-time year-over-year which by of by up were period, benefit Turning revenue a last SMB or year-over-year, X.X% X.X% by the reflecting revenue fees year. year-over-year growth X.X% Enterprise commercial. excluding customer

enterprise X.X% Excluding by enterprise X% PSUs all revenue wholesale and grew by revenue, grew year-over-year.

revenue advertising driven $XXX being revenue Core with ad local and revenue. revenue capabilities. $XXX year-over-year primarily by quarter Mobile advanced revenue, revenue our growing grew national revenue. by million flat was lower advertising advertising offset XX% political totaled year-over-year, of million device with Third by that

driven by primarily CPE rural customers year-over-year, X.X% consolidated lower total, subsidies. revenue by by up was year-over-year. to Other In video initiatives X.X% third mostly revenue offset construction sold declined quarter

a declined on grew higher by X.X% or decline customers video to expenses operating QX, $XXX rates. expenses X.X% X.X% packages, year-over-year In to lighter total in year-over-year X. of operating higher of EBITDA Slide and by video programming partly costs mix and Moving due year-over-year. Programming by a offset million

programming full year expect the declined driven cost XXXX, single-digit content low produced lower video Regulatory to percentage X.X% at grow primarily and per connectivity now Looking year-over-year, customer sold customers. to by video we CPE the range. in

full mid- range. decline to single-digit year expense we produced content the the and regulatory percentage in connectivity high XXXX, For now expect to

service to Cost increased by X.X% year-over-year. customers

service below customers due to offset by costs, to expect with by year-over-year, the cost both be bad higher partly of non-pay first for now XXXX. and customers Excluding years, well more service the in growth grew X%, improvements. debt pre-COVID to cost expense and XXXX freight debt both We And from productivity churn remain higher fuel primarily of bad while were consistent second half to levels. half growth

grew as by due Charter expenses new staffing providing focuses on to and wages, primarily year-over-year, and X.X% Marketing to levels higher existing service customers. better

full year single-digit marketing XXXX, to high grow expect the in we range. percentage For expense the now

computer year-over-year totaled offset operating primarily device other quarter. revenue, acquisition by quarter. driven cost service in increased higher advertising to expenses million mobile and partly to X.X%, lower this of costs, by $XXX Mobile expense, grew and costs revenue comprised software by EBITDA labor higher and expense and higher the tied expenses X.X% were And and sales device by costs. Adjusted customer related corporate political

billion higher Charter to income of expense. Turning net Slide essentially third income the with adjusted to generated EBITDA by quarter, shareholders attributable higher net year, with flat offset $X.X X. on last in interest We

extensions. in last in vast Slide spend $XXX driven the of the rural of of the $X.X accounted totaled year's in third of by for that spend and construction above that to X. Capital quarter Turning billion spend increase quarter, initiative was million is $X.X line billion. quarter, Most expenditures majority our third on

nationally we've access. full securing the rural, for to of and for allow process walkout our accelerated additional In design time

In more is amount appropriate of addition, inventory our carrying access improving, so inventory to to we're support a belt. the

to expect this billion we the on spend construction $X.X a initiative. As year rural approximately now result,

rural investments We and and by office support is from to this higher CapEx, which $XX which infrastructure increased our for was on $X.X billion cable modestly quarter, scalable scalable spending. mobile-related CPE in driven accounted systems. spent CapEx, mostly last driven and and billion back by Core CapEx, infrastructure capital year $X.X in million mobile excludes

$X.X and cable for XXXX. billion expenditures core $X.X between expect be to continue We to capital the billion full year

the generated free versus Slide decline shows, billion driven payments flow CapEx, by $X.X The in and billion quarter mostly cash primarily higher was last consolidated tax this by As year. initiative. quarter construction $X.X rural driven of XX higher we third of cash our

taxes, and free settlements, initiative cash construction grew rural cash by Excluding year-over-year. X% litigation our flow

We in finished debt the principal. quarter $XX.X billion with

run rate annualized current cash Our is billion. interest $X.X

of We or the end adjusted the at our intend ratio quarter, to leverage net target times times. last of the X.X As of debt below our XX-month to X.XX just X EBITDA high was stay of end to third range.

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

ready now for Q&A. we're Operator,

[Operator Thank Instructions] Thank you. you.

from come with will question first Our Mitchelson Suisse. Doug Credit

Your line open. now is

Thanks so much.

launched first. you And launching, for of a the prior intriguing what a play. looked perhaps and reminds price like lower Chris, Tom, FiOS wanted but The U-verse also ask kind congratulations. of back One XXXX about triple me to I value really career promotions. questions. when Spectrum when Tom and it were and than two perhaps customers, think I

So Chris I'm to that promotional and just your promotion can impact behind walk the One Spectrum the prior strategy and hoping relative financial the through strategies. you

broadly it's you're excited mean might you. separately, the accelerate Obviously, going Is or you're that you're of how about are I nervous that pricing early then is evolution? indicating are there combination capital I place. wide update scope in a December, changes revolution to Thank shifts. Chris, take of here this and How to strategies? in or And strategy rapidly us terms investors different you know considering and what net spending is a considering? like

there Yes, but out But successful. I'll quite and be of answer thought foolish, a good. And is turned announced, was to it skepticism, Doug. it when Thanks, over lot memory some your turn was the was people Chris. triple-play to first

Spectrum offered what One at maybe price. little better evolve time. it's work And seamless about over So is. first all confusion Spectrum I there's and -- think a products, really, But similarly, It's our may they first packages attempt connectivity our with it promotional a out there year and together. One

And products, our values to not design pretty it what WiFi mobile, underlying creates promotional really Tom's pricing changed. was result, way whether Spectrum a that Even original Internet, as customers the advanced that for has after and a the similar of that's can't period, our of competitors in It's One replicate. triple-play.

or promotional products additional mobile attach also that we And lines to sell-in.

to I is think contrary what a fear. So maybe

pricing in to. we our marketplace, the do lowered not that believe have We nor we need

I that's past well. Doug, I understand on to strategy shift, mean, I our in Tom the Bickham because player be there as and with over strategy here decade. John I've a and remarks, wanted developing others the operating out prepared been clear, in

overnight. create doesn't And title fundamentally just because somebody changes view gives mean that new to how you your on shareholder value a

service. So of I'm pretty committed pricing, terms products, that things around to doing package, today all we're in strategy our

our strategy. balance well in I As capital of our little had and mentioned, sheet hand in obviously as a bit structure, that a M&A

were of after expect to anyway shifts. can you faster. thought well in I've as capital, it, something don't seismic we do I that if go always terms so going get any might So grow

And create what operate opportunities shareholders. so, already we on we'll don't or should any we're there's the fundamental But accelerate changes doing, people do if I value we how that. and expect think how business for views to

you. Thank

next Thanks, please. Doug. question, take we’ll our Katie,

you. Thank

Morgan with Stanley. Swinburne Benjamin from come will question next Our

Your line is now open.

quarter, you'll the with sure miss highlight economics congrats, in sell last willing wireless maybe, Yes, Thank have on to you network, and you we guess Tom. side, us, were and scheme wrong. stay got the I us we'll touch. more to you I'm miss the the wireless please than but Chris, that, sticking

be the year-on-year in doing would, like you One of seems more some I'm are use we'll looks in it of what plan losses drive market, it they'll know year. P&Ls and is be hoped which Spectrum I that QX. to in Obviously, you've but which faster got to growth. flattish to the sure wireless, product extent, limited see this pretty The

to there really think the is you time starting way wireless benefit to And speak there opportunities? you down help on wondering, way the side, about, path, EBITDA into us us from scale revenue is any to this convergence can offload there the of just as line and building? a the towards cost you're sort a wireless continue is inflect network I'm structure take

seeing like a it about -- near Do that looks lay Because years high few you of the on you or next sort far? in high of and activity And think the to And in the how prepared over the out sounds want what Tom so a not us split benefits split sort see did then, wondering, like I'm are remarks. you're for his to course we're business? returns going at DOCSIS X.X. least mentioned term. time of just X.X you DOCSIS line have to the the of you the

then things, quick Spectrum that One, October. Jessica. to we pass launch and On until it two going So, over didn't I'm to

on our go So results. high in your it to lots regarding December. question on we're detail no had And going impact QX split, of into

to around There's be I'm all that. shocking. quiet to going today try So, nothing

she I to plan over question spot, hand a may mobile. going on Tom high can December. that. I'm benefits on but think that around give to the and is of others on more the financials The go Jessica detailed the in elaborate mobile through we'll and

Yes.

mobile things. So, few remained losses a EBITDA due to

debt saw in best EBITDA. of mobile customer Also, in mobile this continue cable in first one, weigh our to the bad and quarter I'm increases because additional on did costs The the we we acquisition in have mobile sort and for of yet you side both is sure see growth, year-over-year. that that,

of so mobile impacting that EBITDA. there's some that's And

the implement new a in earlier year. And we did system

through has of of And that last having to the I implemented system. about still costs we're working talked it. related Tom sort the think

there's bit that And weight so come will I a as little settle more. in down a think there we

drive But gross continues the in know rolls profitable relationships. which business. as it business Chris because mobile solid promotional rack growth months, to mobile, we product the our that key in that, be even margin with we're make will price on should margins of lines mentioned, here in overall offer remain you is good. offers rate, of the Spectrum absent the additional One, the And at remain that that cost selling a promotional that off pricing that both mobile very XX to to customer promotional in very we with And and while

a Yes, on they to spectrum what essentially to pretty opportunity increase give low and at high Ben, down speeds the splits, at products offer level, you do significantly upstream speeds capital cost. is symmetrically and

it's When and capacity. not you ready. was -- DOCSIS CPE, gives past, $XXX about X.X, a $X spent still you going a cost we the to million did more relatively that, little counting increase point but we that capital investment get a plant to than significant approximately remember, low-cost is This a which in

it continue a at to invest about capability in moves over leaves the of to to the can we've And DOCSIS capital-efficient network technologies, additional you X.X that world with us pretty a the further enhance and talking even been massive XXG gives you where time. including you capacity pathway way

operating have takes using people growth, to additional that you go are remarks cost a my general as that when use how much continues as And additional the well I capacity make investments capacity do augmentation talked in concept, for away the because up. network capital in prepared and these to you it about costs

growth and with capacity. normal that we budget in this a -- capital associated So, have

upgrades, do included you investment. you that spectrum get when split And that with these capacity

to don't investment. augmentation make you So, have the

general, very its footprint. cable of deploying And that across capability your in So, capacity it's think have way ubiquitously footprint lots across will quickly. a entire relatively of industry, very I the entire efficient

were so grown implementation even, we seen ability happened And have I I field our think before. the versus what as speed both say, we've where would last the in it implementations at to far, confidence the well given our the in quarter quarter that efficiency have do or of capital as

that field be and upgrade seen So we've supplier as in executed be and in. from very to good community both progress able the the to will what how

Thank much. you so

next Thanks Ben. our take We’ll please. question

you. Thank

next Moffett with Our Craig come question will from MoffettNathanson.

Your line is now open.

Hi. you. Thank

transition. if Chris, you, First, and to congratulations I you, Tom, questions, the also could. on Two to

First, bit for Tom, was just decision? question elaborate time? of you. made little on now Can a the you your right a the you personal What timing decide

I broadband, you seeing your in there risen And are interesting then both you? good obviously, for with you at broadband costs what And the it overbuilders fiber you as would, terms are for of You're, about build? Are into to how what insight those have cost seeing and doing of capital, costs? respect give edges markets of second, continue for implications attractive think think, the and that to a of that labor you lot implications are are and network RDOF pursue. the potentially would less suspect costs any competitors, less to you of now does have any that

There's that question. those in a in lot

way ago, in Chairman Executive of my chose that in First, employment CEO the that it regard to August with option technician XXth on giving would of year, this a date my years to my as through years XXXX. actually, in transitioning role. the to beginning agreement begin XXth working my my cable an put college because of anniversary two in and process the timing, was I have two ago, I up contract

So milestone a personal exercise. I it me, thought want I meaning a I and of ago couple to have to might was that years

that time. for opportunity. a I future to want long it's go tremendous going through, and was well, I but old, on and of it the so had that going Chairmanship, there's and thought business about age. maybe hand, the XX But it's the other to think years at I I good at on I just it's the the and should working then I'd other was Executive what pass after And is end love this such this -- this thought be see not love business, I time -- And business it's to I to

I decision. So that's came the to how

driver questions, been as pricing there there, there deal and they're those the to and that our through packaging with a price yeah, policies make provider inflationary strategy of see primary perspective In economic and our is and work price issues be the employed the of we but and passed said, we've we've inflationary to To together are -- lower they're ability revenue, out but a cost seen. create market labor and use that for with to quarter, recently good cost can and COVID and country had these pressure video consumers we've this been our that to to costs we've increases, have deal prices in drive it products our result result your and it. numbers. you have broadband value some force and a value pressures And dislocations that passing to from there's significant, at the of share a through increase broadband was the as

create customers the revenue primary it way to is up developing, our driver each more of more the customers those that and which is the that's And to the doesn't create with so together. our revenue our strategy. connection time, with same negate and go primary ARPU faster revenue opportunity At associated products

develop built. than we are strategy projects the had off RDOF success the real, and cost develop more we've we of and RDOF of can terms also working than higher had penetration is in costs to though anticipated, number we've we we of passings that anticipated in both we but that Our have

a cost pressure passing is things difficulty does for would on thought we and to So be attract per basis. it But create done. and to get people what labor our net-net, it

and work by the the and so And impacted development ourselves the issues we're of order with workforce do we being what do market. market supply labor the we chain having work a supply how and is and

think the to do our as the ability competitors' the I of everything and affect So labor cost will cost well. cost build and money of of

that have them is many The Yes. of advantage scale. we against there

to able supply areas when and most certainly, ready build. then it acquire the and So we're where to able around to comes being to move

the cash -- a have And we ability that a to have to to we're we of that to capital relatively execute have think of on good builds. able these really the advantage we small free do portion I continue deploy really very amount is that side, cost of large on that. what's a flow

as are. our borrowing not builds on regular to we're to as some in market a others beholden So basis fund the

well are actually I better that And have rural returns from we that So in perspective, still on against continue builds than are said to or least performing well a where belts. had as those actually we we think would the be at The we positioned. expected. financial we I'm confident

the and Thank again, Chris, you transition. to to you. congratulations And Tom, for

Thank you.

Katie, question, we’ll Thanks, Craig. take next our please.

Thank you.

Our will next question Cusick come from JPMorgan. with Philip

line now Your is open.

know up looking us capital mention or people think And can updates on year? targets initiatives are transition, in you Thank leverage here to RDOF about a you. about the we that part give couple couple that, consider the follow broadband rural you. there then to contribution on? A event market, asking but on we as noticed can a early, your should intensity this somewhat core follow-ups, Chris, know second, How of rural addressed that you of I network didn't any and initiatives it's if capital those next guys. Hi, you I I preview to December, I changes things can. in spending Jessica, Thank you forward for but little a of and subs. which hear other things minute ago,

the first take one. I'll

forward. high exactly of But in said and believe and there we she and and didn't the rural timing decline. be to view all some of intensity it remarks, on and relates that may I inventory case capital have going that excluding to prepared mentioned chain core our She the as in capital you mentioned split supply lumpiness continues Jessica how get wouldn't terms that. collectively intensity now in core that if think outlook her was the

really and long growth. leverage I've Charter, it out I've we since X.Xx helped a since time, years, that put The the levered X.Xx at because and over probably a Charter target, equity in marketplace. XX here at together Switzerland that funny I been strategy a had rumor and since good bit Germany have heard for I find little

And different. the interest rates aren't all that

at for In less got it here as I fact, than when Charter. probably Charter us today

on strategy, M&A So, operating balance to views that that how pair how our to sheet with strategy levered through a create equity value strategy changed. hasn't the and the and and

believe entire don't And overbuild the there's -- topics in to I out fiber I they going, of it. of the I it thing of that prepared a sense same I two is into think while the makes a a on overbuilders think Doug networks, I have there our remarks No, is other when have mentioned to one to we're know had lot do and network. lot the what we got topic, for do was do the which need operate

capabilities. We we decide It entirety There and fiber, have its may in path that. that of mean economical fiber the doesn't in we for part fact, good don't network it's really that do forward. longer for we – be want build on upgraded to increment. to of laid the fiber term do most the that portions a out do same that path the cost good can the have But lower to any not And and is we're I and don't dramatically go see on. the that Tom otherwise path we're a why perfectly network full be reason

broadband off of we're the side, contribution coming rural are we on subs. subs seeing in broadband to executing rural guess the the that already. build your first On Certainly, I question,

in into weren't about more provide I've start to entire the would It's information will some will think year-end information. quarter. I detailed expect some growth not we femoral do build providing that this we But and broadband. that quite better said that coming I

you growth amount some of see, of as our that reflects smaller the that we as well well legacy XX,XXX those very growth off – the of growth So the But broadband additions are a subs. footprint out. in incremental doing off build markets we

giving just how run As for on don't as to you piece about think front want I rural next guidance year, yet. should far thinking about that

rural a the think having sooner you to accelerate, is I both I to later good try builds service business. to like good what able passings out for than we the in in this strategically an pace, effort with design the do at consistent because to would think is tell is to build year we'd and be walk which that what did certainly and I

for to just do need I And because can as build from expectations and to that basis to on I'd we're as in build year. that strong number tell a I everything be side placing able regulatory next are quickly the service. in that we But to you would expect trying perspective, continue have of build a doing to so. we certainly well sort on we meet pace give you we're that to what our as to don't,

And Thank you. deserved. again, Tom congratulations Chris, well that's and

Thank you, Phil.

our question, Phil. Thanks, we’ll please. Katie, take next

Thank you.

Jonathan will come question from with Street. Chaplin New next Our

line Your is now open.

as if fund plans run. the to you broadband been broadly impacting of the It's year the wondering you Tom, how heading rest. congratulations an the wondering packages can more fixed to on it beat it haven't the stock or well, congratulations you be spectrum your -- out more holding into competitors cut. I'm Thanks. market from changed you add by incredible door. pricing where I industry the and on you of see really environment the prices don't mentioned with one-off you price broadly? to pricing think and comment December, that may I'm to around you you you so introduction were your give only my a can a wish Chris. if was any ago us was will as Maybe wireless

you. clearly Charter for then, a environment a where approach that's though sort a to value -- with long sort about while to volumes potentially measured you of And price. be how hallmark been at years time. volumes which it’s of and Help to reiterated just drive for you're us strategy And are been creating been be think to clear on for pace lower growth going is in an if to which Charter's would a grow pricing? Thank continuing take very and long-term you and of measured years, for EBITDA the has Tom, what

I'll in first. jump

just be some changed and that. said about includes mentioned increases, should that indicative the you're correct haven't how our broadband terms that of thinking I passed haven't inflationary sorry, have pricing. that We we to cost lowered wanted in Tom I of we through

the on of I'm let few access. fixed bundle cover The a rest. then the mobile wireless high-priced lines, throwing pricing full access, lines, here just for designed multiple and And the cases, with pieces fixed others in suite really the a is some in and lines mobile combined

existing lines, in comparison. that's broadband with So right September pricing comparable and a a is you mobile at both take I because if comparison the think our look

access Spectrum to that the and fixed We're combined now with One wireless offering. compare

at you of lower I When terms a really right the think you'll that's to that is think only terms not quality price I to But and not it. look the the the best those. but value, dramatically see product that's think that, way comparable. we're do of in of way higher take in about

guess prepared consumer continue dollar opportunity against just in is terms combined. to remarks said broadband that our I add would to And XX% share grow for of of market penetrated Yes. that for takeout spend for significant. my the in I ability mobile we're and I that

we infrastructure have superior huge of requires using attractive us we no physical significant front so growth network what's to and this big of connect at where for that products And opportunity the capital. to us prices with value customer the is every is it huge. And real in dollar drive

can very with our high-priced means that, mix very into those broadband so really And very associated bandwidth basis, and hasn't add our And mobile combined usage opportunity it have changed. with product that's now products mobility we consumers. the our attractively fact you a that a really product for big on structure. and we in products have The small

can save And we of at consumers spending, lot money. when a those we consumers look what are

concept. has will. of we're to hasn't using of we'd there's So getting we're get they're the technologies in like with and it, that's is the marketplace basic And spend the it how not notion changed product huge a a basic changed. and what And and much sets lot it, of combined, but the we and more, and

customer by Jonathan, kind accelerated really followed will broadband during guess, year, I lower then the of over had we've on will of as EBITDA in period. those mean to how somewhat growth a last customers lower that and the trajectory, forward And think that growth time out higher terms anyone what's really into I that come in revenue revenue don't COVID that be translates COVID we surprise the growth coming to growth based it likely we had pull versus that of

the plan then sort we will execute what based we connectivity and up that revenue have talked But that back-up that think pick the will as growth see as it expect the market, on that again. long-term, of on so that we normalcy you I Tom that converge to and about return in certainly increasing to in medium

side, we expense have return again once levels. we temporary will the people seen But out we But I the had impact consistent and of, on think Similarly of it to expect. is by think in more some that growth inflation impact, financials of a sort in it normal we that the crunch that, called that people be sort is some what certainly QX. think on with what of followed

closer could there slowness I that a I the trajectory is in medium that term. the be that, in growth short bit to acknowledge ultimately, the But and so in levels. EBITDA think of that, back I of long think pre-pandemic And growth little term,

That’s Jessica. appreciate great. I Thanks, that.

Thanks, Jonathan.

please. We will take our next question,

you. Thank

from Jayant with Our Vijay come next Evercore. question will

open. now is line Your

be had in we One, what flattish broadband growth. I talked unit of rate is? focus for broadband of big a the about ARPU increase. magnitude market. congratulations haven't given And My of seen obviously, on both. all Thanks. Any mean details that to the sort just a for you've us, seems to questions. a you I couple of

And net ARPU impact there on housekeeping, quarter? for in the just adds Thanks for sense any So what much. was the broadband so on broadband ACV then any XXXX? that could drive

So on I'll some much those conversion be quarter, forward. we was was ACP take quarter. than it the was smaller first. it impact of There It EBB the of much last expect in last and to to the one broadband going smaller

think call at out separately. So I don't all it we'll

year-over-year. was was but up And ARPU Internet I flat, would Overall growth ARPU in call X.X%. the ARPU Internet

last versus up you been have included If would and mobile $X.XX ARPU, year. it overall

is pricing So just from issues mix we happening that a what on market, driving and business the mobile real there side, penetrate growth beyond largely by ARPU to market I'd the further you perspective. of additional, can think driven the say, by growth ability the in our really get

on we now. seeing ARPU there. we think are we what what growth that’s like we're going So give forward, feel guidance well doing expect don't I that we'll but

Okay. Thanks so much.

Vijay. All Thanks next question take right. We’ll please. our

you. Thank

Supino Peter next from with will Our Research. question Wolf come

now open. line Your is

customers. and Spectrum mobile. wondering mobile Hi, the and an that Historically, on added contribution primarily represents the broadband invest intent existing if to Charter converged the sub solution said thank that incremental assume questions. One, customers, called what you've this Two whether Comcast problem. is One high in and is And acquisitions have fair margin customer that for and you. it's by to I'm mobile

commercial and to I'm I $XX separately, sequentially. sequential mobile view future. comment leverage. looks grew losses your it's trying than you less growth. could this million And like if your that And It sure with square view the wondered broadband, is me to EBB adjusted the I'm that just on for of a not

on you. comments be Thank any so helpful. sequential would And growth

complicated part first be to the the to question, yes say we to yes. I'd obviously, Peter, expect growth of pull but broadband through. sale, a your able It's

One solution. it's the Spectrum fashionable that's additive, to mentioned the now. to the have is right Internet And right think But comes said, now back, And broadband I growth. it One You be when drive the growth. face the the activity. has the not biggest Tom I Spectrum growth And that now. to And broadband opportunity, problem market the The solution I problem as to we is could know issue we not activity. thing market right think solution incremental that's but say

of by source biggest mobile upgrades benefit should base, the existing as far today, well. still is which Internet the as well growth our base that As to

the actually adjustments impact taken I On impacted year-over-year, second would those sequential couple the overlap highlighted of saw two I we that remarks, only things. And way out in in quarter had you that one pricing growth, point in that was a the which One, in I for growth the the pass-through. of quarter. QX that versus by third was guess, we the had prepared video

one-time So a those that last don't in pressured enterprise, year sequential year item in that's in happening rates benefit year-over-year was you also that There the a quarter. this part was the of in growth They're what was or there. in commercial. that have

So some overall impact of what the not you're growth trajectory. is lumpiness, just seeing of there

that the we're the On think for cash that based right now, sitting been I has on the think, on opportunity company sitting so And I high would share is leverage the do point, company, point. just yield we're buybacks structure, on advantage where equity that say free to I flow in to an the significant long-term. capital where the overall that continuing presents

times be And four temporarily so at standpoint a a off what move I half don't I been a reason we've ratio. pressured as might the see of and four of or where even as in growth environment said, to where top from your being expect consistent leverage with are buyback what strategy? And so to stay certainly to we leverage a our we

Charter. decade Tom, a at Thank great thanks for you.

Thank you

Thanks our next take We'll Peter. please. question

you. Thank

Brett with Feldman Goldman from come will Sachs. question next Our

now is line open. Your

congrats just echo to my here question My follow-up first is Tom for a I'll Jessica. and Chris. And Thanks. to

merits mentioned of You continuing buy back at to your the stock these levels.

if of wondering also I'm that an also your opportunity par. the some is at trading of market? to accretive buy to debt debt back Your significant discounts be could out

business and for remain on fewer customer rid seen meaning as but of if they fewer we've that then I'm the your been you an if insight seeing Meaning, year-over-year businesses. basis connects with in cutting operators' we could most wondering get up driving cutting I'm it. their what's cord at actually you're pay a several TV, broadband? us cord, people years. over Thank as the uplift gross there's you. you a last pick and And give other some to know curious

our is repurchase range. is, two market. noticed between the have to leverage the particularly think what in end plans best do option at also our debt as I So, discount as question, stay on that of given a the the at consistently our the we to We debt trading top modeling

and we'll to so appropriate on And where given our we But that do. the notice what I moment. sits appears next do we to that plan particular won't it. comment And we'll based in make do at continue anything decision on modeling, the certainly market

to inflation biggest the And is video. something have. through of increases, even fact continue to really if have here the customers driver the even Cord having rate that we're pricing that like pass means which still to they'd a affording programming it's relative to that cutting, outsized be difficulty it

so And is yes, of it predominantly driving downgrades video.

of… But not disconnects

And connectivity. retaining the

spend Yes. up downgraded sell is disconnect mobile hospital package package And they for good And from customer in money, us they -- overall no end a savings. mobile value end Their actually savings in mobile because sense or video in video saving many buy that video and up the is the time. they many they we a ARPU also video it them. at driving have and customer they obviously, cases, the cases. that smaller same a buy up But a

you. Thank

Katie, Thanks last take please. question we'll Brett. our

you. Thank

Our last will question with Rollins come Citi. Michael from

open. now is line Your

Two Thanks. questions.

discussion. the revisit could I if First, ARPU

down trading there terms in that forward? the just in sensitivity should price you're sensitivity about that base or their the into you're grow how going the the then ARPU risk customers there's volume signify recession, broadband this KPIs greater are down describing As peers. broadband is to that does between and looking if goes investors of Charter's step the performance that, think as broadband Thanks. in at financial And performance? and accelerates US a relationship And that customers quarter, secondly, video,

under high still, is to a be of will you certain when And overcome. And product But stress on performed so stress. the hand, remembering attractive a the a that career. consumers unemployed. lot it been recessions products of them good time hard other forms I've And it's relative very that to a it's And are other value a, my the during well is at through I think, you're really attractive price video, amount if I'll can't even there's our challenged. I in answer of entertainment. have business even them. that. reason our that try are because Obviously,

the in more environment recessionary that the we everyday become value when but elsewhere, offer more when can people paying products. that to So actually of attractive they is the more means price is they're get our proposition – other with are price-sensitive, become pricing a which we conscious reality that people superior what for

not And company's that about a so recession perspective. worried our I'm from

would in in But the in that advertising enterprise. there be our other would might see downgrades side, video. be are there had performance you the like better mobile, a it good. particularly actually some could impacts get the even video we given And And mobile in pricing the on margins the if margins that space than

get moving into more of you customers business advantage well. of mobile So as some side the the

a for recession, hoping not we're but... So

fine. be We'll

On broadband, during feels unlike the insulated that. it's product, when and need speed purpose That's it's been offered staple for been have we not really upgrades rate. been speed many, it's offered which they of It's But speed. higher a a pushing rate. at a just a generating an when higher or wants about been customer attractive

downgrade haven't that the base. the because the of think, with speed into we I of us artificially so mitigated And risk driven upgrades, is the

more going And in on are broadband sensitivity you grow seeing the to price you a price just are on forward? the -- level base sub sensitivity, net

a activity. market issue lot of not that the price there's that broadband that been hasn't It's said sensitivity. we've It the there's in think I just overall. mean in I is additional movement

don't I so think than scenario And what before. different is that, it's that significantly been

be footprint, across that do competitors. and is us always Price has continue sensitivity at to it to having than not all our to continues helped helps faster us was the in subscribers value different we price why packages our and pace been significantly grow important has important. a competed always than of to provide competition to past. And today. and subscribers time that We've And that grow the that's over consumer

historic they're were -- see you'd I issues with price The way broadband broadband, if at lows. would there disconnects, and

Katie, Mike. Thanks to back you.

Thank concludes today's you, ladies and gentlemen. event. This

now disconnect. may You