CHTR - Earnings call 4 2023 | Charter Communications, Inc.

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Operator

Hello, and welcome to the Charter Communications Q4 conference call. [Operator Instructions] Also, as a reminder, this conference is being recorded.

If you have any objections, please disconnect at this time. I would now like to turn the call over to Stefan Anninger.

Stefan Anninger

Thanks, operator, and welcome, everyone. this be accompanies website, on that ir.charter.com. presentation call found can our The to there in you of would to remind I like that which encourage and cautionary read carefully. filings, risk other are statements SEC contained our we you factors number a

constitute we and prospects statements uncertainties differ cause results statements, remarks that plans update that concerning from predictions, subject view only, no current such undertakes revise to anticipated management's forward-looking on may reflect make Various which results. historical call are today's expectations, Charter and statements. forward-looking risks Any to or to actual and obligation or

today's call, and that, CEO; CFO. On and With have we let's turn our over President Fischer, call our Winfrey, Jessica the Chris Chris. to

Christopher Winfrey

service. we nearly customers our XXX,XXX we million than for added and total end At lines Mobile more our lines. EBITDA XXXX, mobile as X.X% X.X of value Spectrum of XXXX, in up while mobile and X% grow X.X% meaningfully by gains quality Only the customers, added several Internet to nearly growth XX%. of the X.X by now penetration next mobile when connectivity of have recognition. the Internet Stefan. over excluding Revenue years services XXXX wider Thanks, had was we million we In and advertising. grew converged And XX% expect

long-term impacts last we transaction the and Small and environment admittedly gross moved growth which One was from Spectrum as low by our initiatives, clearly wireless competition churn a is drive strategic challenging, well existing our wireline in Internet through fixed to on of footprint similar gains, mobile persistent overbuild additions to activity. While in growth, the we're net has levels have quarter. executing driven outsized more case and driven working been in changes

own I that.

at a competitive high-quality and drive good me let service start by products long-term we're delivering growth the then what on to believe what and with environment So we doing price.

marketed while phone which Fixed at capacity their perceived with geographic a access, by customers. the inferior an product to limited in often companies existing price coverage, wireless is fluid, is lower

fixed to impact is wireless continue believe We the from temporary.

product more and faster Internet reliable. Our is

Our pricing be to profitable challenges needs spectrum to maintain is allocate bandwidth and mobile. continue capacity increase, with face and similarly and capital Customer MNOs will when required mobile lower bundled will their services. to

While we and to bandwidth quality believe that value when I win. happens, increase can't promise and needs

build the new first few painful, of the to On overbuild to overbuild impact a front, tied They future. We limited points wireline -- convergence and compete to as Over overbuilders year pace overbuild. don't now now within coming penetration to goals of percentage footprint online. vintage have lower-cost we the The during penetration likely a be been do. it's continue It's we reaching passings same or of built. our capabilities well. have tends ROI their in Internet the see don't but ubiquitous the

less putting the of financing overbuild planned operators, between increased, incremental duplicative pressure costs have returns. overbuild on opportunity. meaning even Some And more was

many for feed passings better provide We capital ROI these and of also expect will operators. allocation

players and is our assumption require shareholders on rational balance Our return competitors which within control. That that economic adequate our isn't investment. are with sheets,

capabilities, on and and growth enhance key competitiveness initiatives focused over more return long-term the Internet to are strategic time. normalized we So expect that growth a we to

the head those initiatives, we as update I Just on everyone their over to and a to Slide year from rationale of wanted you when remind X. we detailed down status

ROI and our targets. Our footprint expansion ARPU pacing, penetration, is beating

was already drive over temporary help New despite customer customer within mentioned I growth construction XXXX challenges subsidized rural will Internet our footprint. $XXX,XXX. the existing growth

cover a both at passings activate of which will and this pace grow more better-than-expected we'll we'll Jessica to year, rural cover. continues -- more also penetration Our subsidies

regarding how rules apply are investment. concerns although opportunities, additional BEAD NTIA in given where We'll focus guidelines. the private is states provide to investments the will will Feed conducive potential our states uncertain

have market we serviceability and Outside with build similarly commercial strong lower accelerated expanding returns builds, greenfield, and also Penetration fill-in here of and in our and are passings. predictable curves rural, both cost. a existing residential footprint

prioritizing We transactions, also to drive sales initiative, satisfaction. customer remain experience transactions frontline of customer higher digitization, intended committed service tenure all via yields, overall to simultaneously enhance the investing in is which execution our employees levels while and better higher-quality to lower

a investments the in significant in years XXXX. attrition targeted reduction Our employee over X last in in employees resulted

in also efficiencies. facilitate digital tools platforms and In enhance customers are investments to automated quality agents the of number better for better of XXXX, new their launching service have the for day-to-day AI to Our service driving is that of and jobs. digitization we quality service a and

evolution in finally, work efforts, markets. our includes launched also our and X in markets year. convergence begin which remain We evolution network completing DAA project, with We'll two initiative, development X product all in our our six on And -- step more, to later launching tiers markets video our fully step this speed currently course.

Excluding $XXX the evolution expect result passing. the to benefit per network continue project, to we cost that of any a from our savings very low

complete project XXXX. in We the to expect

So upgrade can't low-cost our capabilities, ubiquitous, of fast, competitors our replicate. which

One performing market-leading customers performing and offering well product for XXXX to Our offers with the converged with mobile our expectations. both like and their network. connectivity the features offers continue grow. our features boost retail. are Spectrum with speed continues Spectrum -- savings anniversary Mobile at We'll additional reaching significant One to also also and evolve One Spectrum and at offering differentiated in Spectrum evolve pricing ahead customers first of capabilities. and fastest promotion is And

we we've our and our the to easy-to-use discovery video sales. the with customer our great U.S., we million our feedback, customers with footprint. product. launched We're linear industry-leading video and allows boxes access platform go-to-market of interface. rates. unified one content and viewed across entire platform October, the This Combined improving new linear Spectrum within been our search evolution In video attach deployed our most X video Xumo can app, getting turning Finally, approaching their to direct-to-consumer in for and streaming the Xumo MVPD is TV keep service since launch Xumo platform

and hybrid upon similar This new plan customers January, to pay available select several no will flexibility, Spanish next of we our asking Spectrum all ESPN+ product, become the DTC means distribution Charter nationwide to for modernize not packaging renewal. to cost. certain twice cost. extra VIX, additional distribution language Early months, model consumers in all and DTC available And good TV select at both for a is no value programming. became and customers at customers or TV agreements Disney+ -- to That

and distribution forward value advanced provides issues and and interface, path and functionality. clear content to -- seamless solve key search new model with a Xumo's SVOD DTC customer utility hybrid linear Our of discovery choice, integration

on maximize Charter we as When value. key initiatives shareholders reflect the market and we what long-term believe our to are we're acting challenges, short-term

expectancy and have Charter we of to and value on posture a opportunity for excitement execute enhance growth shareholders. that for So initiatives the long-term our rate

execution we poor broadband competitors the strategic In it initiatives. the capital speed our our leaving are relates limitless is unturned normalized for as ROI return hinges assumption to we rate a no the go-to-market more at our that on on can to stone growth our and, short term, frankly, which not projects approach. Ultimately,

can our our money, while and the entire but services So executing heads future. offer the customers best customers and not saving across clear ensure now, on we're keeping all footprint, we down products to in a only strategy

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

Jessica Fischer

Thanks, Chris.

wireline declined video results Let's turn customers customers the voice customers Internet our residential quarter, XXX,XXX Including while XXX,XXX. and we customer to fourth X. by SMB, mobile, and added In on by in Slide we XX,XXX lines declined lost mobile XXX,XXX.

perform anniversary quarter XXXX this Our Spectrum product product roll-offs past signed their XX-month customers One our well. One up quarter. drive didn't continued Internet Those that Spectrum the reached in to incremental churn. fourth of promotional for

rate adds additions to we lower In mobile flat with lower sequentially. gross tied gross and line the quarter, churn a slightly year-over-year had year-over-year Internet

We see well remain as lines customers. our healthy at usage that these will confident lines long-term continue One perform Spectrum and to promotional data

rural We quarter. growth XX,XXX line the XX,XXX target with the XXX,XXX rural. in passings XXXX, alone, footprint XXX,XXX with by quarter. additions our subsidized the our the third by ended activated and in also net in fourth customer with to rural in and this from grew acceleration Turning year during XXX,XXX those an accelerated Customer subsidized we quarter passings in

that XX shows, in Slide As reached or XXXX, XXX,XXX weather. close cohorts quarter new the about to first the the winter have generating with passed we XX-month seasonality we're mark. In in subsidized passings, XX% in tied XX% customer activate XXXX penetrations of approximately more than to rural to expect

approximately far, that to Slide state additional XX million committed will shows with we X.XX we have expect, so build rural passings. subsidized that bids

end by years RDOF to X our schedule. build completed expect ahead also We of of XXXX, be

X. Slide on financial to results, Moving starting

driven declined growth new of year, year-over-year, revenue growth rate last Mobile, the rate X.X%, by offset growth churn, given partly the adjustments X.X% base. Over step-ups, residential video-only up by Internet. nonvideo video customers customers with Spectrum within mix customer and offset a higher and our per by by lower-priced promotional Residential of customer mostly packages of relationship was customer

revenue year-over-year. One into excluding by of by shows, X.X% but X.X% the As X Slide when year-over-year, impact Internet Internet was in mobile. GAAP total, of allocation Spectrum out flat revenue residential Residential grew ARPU

customer. number lower-priced These SMB Turning a mix SMB to video of lower a X.X% SMB year-over-year, of due per primarily customer commercial. monthly SMB X.X% were factors lines and to partly customer, per by growth by voice revenue year-over-year. revenue lower SMB of declined reflecting higher offset packages

year-over-year. X.X% Enterprise growth enterprise driven X.X% year-over-year, PSU by of revenue grew

Excluding grew wholesale all X.X%. revenue by revenue, enterprise

revenue to by was our consolidated to million revenue and quarter advertising market, mobile ] year-over-year $X.XX X.X% revenue And device $XXX growing advertising. X.X% higher advanced revenue. capabilities. Fourth a year-over-year political fourth up due when sales. up by declined year-over-year by ad offset XX.X% quarter Other partly Core by XX.X% challenged more excluding year-over-year advertising in year-over-year revenue driven or [ less due grew total, advertising was

due declined factors on Moving expenses and of partly These higher X.X% offset fourth operating declined operating X. decline video of in total EBITDA adjusted expenses video by customers packages. year-over-year a quarter, the by year-over-year by In Slide were and lighter year-over-year. rates. X.X% programming XX.X% Programming -- costs to a to

with programming being For XXXX, range the variable. per we expect mix video the package to in customer X% cost video largest full our year grow the year-over-year X% to

costs, offset costs. higher to partly other ad driven XX-year transactions the improvements of by Mobile, direct and partly Other by by to service of offset year-over-year, and lower primarily mobile by support including per increased sales Spectrum X.X% sales by customer. investments, revenue service productivity additional Cost lower mobile cost growth by customers device driven increased activity XX%, from

dispute and in build now are workforce programming back a trends largely that Looking complete forward, pay I benefits our service would to longer are September. more related previous tenured trajectory job and and investments transaction note to after structure, on skilled the

X.X%, Sales by and labor lower marketing costs costs. declined driven primarily by

Finally, by costs. driven X.X%, labor other grew expenses by

Adjusted X.X% X.X% EBITDA grew by by year-over-year when excluding the and quarter in advertising.

of We partly offset Turning a and to X. driven and to billion the on higher expense, in on income higher from sale down EBITDA. remeasurement shareholders generated net year, $X.X net pension Charter attributable interest of towers last income fourth billion Slide the a loss quarter, by by gain adjusted $X.X

below spend of to initiative XXXX primarily evolution. Turning extensions quarter offset timing, $X.X on expenditures market quarter spend and quarter totaled Fourth and the the XX. subsidized commercial billion spend sell-in and million, lower on extension due scalable expenditures, partly driven capital residential on our purchase compared in fourth last and CPE network year's $X.X totaled by Line higher to billion excluding greenfields Slide $X opportunities. by year, spend. rural lower fourth Capital to driven rebuild, higher line construction than by billion just upgrade totaled $XXX $XX million last in increased fourth spend quarter, infrastructure

XXXX, For billion. we the full year spent $XX.X

billion XXXX, ahead of we evolution billion. $XX.X $XX.X at extensions spend billion, network and expenditures full total of $X.X capital including to and Looking year billion line between approximately $X.X expect approximately

core expectations divides lead Slide spending On Line slide line our and extensions, with spend. year provided XXXX, current program. XX, evolution categories: spend spending the we've three network excluding into capital extension CapEx for associated our The possible through any

we to to $X fall CapEx billion just As by XXXX billion expect $XX in the spend slide shows, over of XXXX. approximately

continued Our robust to greenfield, turn, subject for similar expansion overall and growth. having line commercial growth passings. footprint be extension growth, In market to should CapEx our includes of nonrural and of passings serviceability housing sell-in our builds and to pace residential spending continue XXXX the from legacy

our that to of are track natural a pocket passings per have low These extensions fill-ins cost long or at passing contribute reliable growth attractive network and penetration and to ROI. record trends

acceptable CapEx outlook figures uncertainty passing don't program. to potential XXXX. build capital We BEAD XX or expect to in BEAD in to regulatory the Slide overlay any potential be peers XX, our expenditure We've not will bidding with included And guidelines competitors, the on our the of similar and mentioned, on our in and BEAD impact Chris our until Slide an success as outlook. the subject associated given

remains Turning to capital expenditures network essentially evolution, where unchanged. outlook our long-term

We passing network per continue spend to to expect evolve $XXX multi-gigabit to speeds. to approximately offer our

Finally, evolution, decline of remained revenue excludes flow below has percentage core long-term of consistent a important percentage extensions the our as capital And line which has XXXX. of and level, which network expenditures, excluding capital XXXX extensions should revenue completion implications. initiative, since expenditures, evolution network line following as a cash

favorable The year. totaled less increase was in flows Slide billion, capital expenditures, an XX. cash compared from activities in and a flow free expenses $X.X expenditures. partly driven to cash to on offset fourth net primarily Turning of the operating cash $XX change by million related decrease last Free quarter to a in accrued decrease decline in capital by flow

Just for XXXX number billion, calendar sheet. cash on We between to brief $X.X year factors. our balance a $X.X before legislation land a XXXX and under comment cash of to on payments current expect billion tax taxes depending turning currently the

principle. quarter rate of senior in outstanding our In of redeemed $XX.X finished outstanding senior floating We notes. full notes all paid we debt the secured and with first of in billion secured all the our XXXX XXXX, XXXX weeks

debt no in significant we due longer So XXXX. any have maturities

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

rates structure, $XX to is years X% Given X that rate expense impact would our rates, in If low. at our higher to fixed next XX% million the rate than refinanced run rate our debt debt relatively we long-dated interest sensitivity of all or the and current of be expense. run interest less our

at of XX-month and debt just target the high quarter, below to the tend or of leverage X.XXx ratio last range. to fourth X.Xx stay our end of EBITDA of As was end adjusted Xx the net to our

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

Before turning mobile few for the connectivity the want a program affordable call to customers. over to regarding Q&A, Internet I make and comments

doubt additional program program. will those the allocated funding, designing we the There ACP is still the hope and well program this end to While force that full to we be of assist we're programs benefit be HCP connections. we're could aware Nonetheless, spring, on program high-quality sales that no that disruptive product, our well the as hundreds many. saves end the as would for of preserve our will have mobile retention customers and the which are dollars of

driving impacting so Despite temporary We're sales, continued end pricing we our may to A can XXXX. to short-term ACP, believe also customers. value are initiatives. competing been component inflation while and in enter that actively and in broader from without growth the headwinds focused we expenses, XXXX. growth do our we customer to of as and and With short-term we of growth has face our continue reflect well managing preserving fixed wireless those are EBITDA we challenges, impact on healthy the potential service

on most growth. return a importantly, But long remain we term Internet to focused more and normalized

we the best opportunity We value. believe at create advantage best and will underpenetrated to products have is our our the long-term the remain prices what industry most that ultimately in potential. relative we of what shareholder Taking are

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

Operator

Jonathan from question Chaplin first Research. with Our will come Instructions] Street [Operator New

Jonathan Chaplin

Chris One Jessica. one for and for

wireless you pretty dynamics the can the fiber us change guys few if new the was give was sort guys. there from across bigger as -- quarter whether specifically? of It For a look Chris, seemed out a I'm stabilize. fourth to on steady of And that if wondering we and last on in in context in or some focus course there wondering fiber competitive pressures the competitive fixed just I'm potentially seem over quarters, wireless the the markets fixed

go that And down guidance cash If then of has great. for the tax how this cash extended is much tax year, Jessica, by? -- depreciation expanded

Christopher Winfrey

competitive within we you of as continued the So fixed mentioned, of the footprint in saw the some expansion environment terms quarter. quarter, fourth wireless in

both and saw churn. competitive this as can adds the what the aggressive wireless some you it slight gross an marketing overbuilders. also has impacts especially In when outsized from net and from heavier Jonathan, net know, promotions to fixed adds, and front, We on And really changes to negative, slightly drive are particularly to be gross was appear slightly adds positive outsized impact. adds case, or

the As fourth doesn't mean you short what know, on we're we're, much very of particularly on not course, inside that of either, term the on was focused long term, the quarter. going but focused that

ways the no in unturned adds footprint. I as prepared gross potential to particularly in leaving remarks, stone we're in addressing term, so existing improve mentioned And on the go-to-market the short really

at trying doing fashion outsized in given that is changes all an We're all that it that to aspects, that and that make driving though, controlled here. do looking impact we a overreact don't either but sure small are

Jessica Fischer

on, recover saw with environment August saw December had from the that we to what in didn't. dispute Yes. and And about November through I'd as wasn't We quarter's and event consistent the the that slightly are we quarter. January, on, net Early in expected we and call. the carryover Disney we rate in add negative some consistent they the had last adds levels we talked the going that But had to December. seen event, December exited quarter, into we

continue. So that environment does

just connecting cash our being the of network. investments upgrading in and On impact tax bonus. the and the it's us. also side, are economics that I expense But reforms will would America It's that interest say rural not R&D the Jonathan, support deductions considered

so fully them. of are we And in support

making, legislation guidance. through. cash to to our benefit But be given to go material if do adjust a the were I little that to the we're there a taxes think expect it's we premature investments

Operator

Craig the of come line next question with will MoffetNathanson. Our Moffett from

Craig Moffett

A can previously you comments those us of number Jessica, are have, new were couple the of you the of versus you ACP. made if insight little a more bit into wondering just if many that paying try questions. for subscribers how for about thank you subscribers quantify to you I'm have ACP subscribers?

then I broadband does expect you about in adds about And And footprint? the they do that net you rate per think How flowing you quarter going XXX,XXX if comment wonder to wireless. indicated T-Mobile fewer way just the about your XXX,XXX inform could growth fixed into that also think that forward?

Christopher Winfrey

would maybe So can it The and you Internet answer requesting. Jess knows, connectivity think a who not issues just customers brought who otherwise. affordability out then have as with of in importantly, consistently. connected able off more have program to been what everybody would access coming I were But customers start take broadband back. to broadband have and step ACP marketplace been ACP really remain allowed it's I to given has to and the

are work program. really households for program largest proud the not the we connected hard very as can the think, been We're possibility ACP Internet. refunded, order to know, we've And been some Craig, we're to be effective So the provider to But customers in an time. we're it's keep it's working We still country. going on that refunded in ACP to in you this if connected. -- today that to the -- be hopeful

save significant tools have customers thousands to of dollars, as hundreds Jessica mentioned. or even We

that, our pretty to program And began. potential customers challenging the our having have And going it's before ACP for we're a the impact said to customer going of actually most over to ACP in -- mind, the the report consistently customers keep us of end predict is Internet but disconnects, time. that to in I'd were program highlight all that that meantime,

Jessica Fischer

Yes.

higher a Internet. that more take But all the little customers to Craig, the services X have do when upgrade take began benefit, speeds benefit. ACPA us. side, few over ACP from on used So other households received wireline Very or to do million those for have flagship you our of they higher numbers we speed PSUs receiving or the many or

of through from as will happen So through not continue keep We'll to process. ends. at the to the might this there's anything as But our move that funding visibility -- and perspective, informed I when point people program we guess, April. lot the a try

Christopher Winfrey

In refunded, the end, sure make we're still ACP is the a could I there's to and still focused think case. be that strong trying possibility that on

Jessica Fischer

to guidance? talk wireless to want net add the you Do Yes. fixed lower

Christopher Winfrey

Sure.

the thing noted we saw, So same you that Craig.

the the I bigger utilization and to the there that that believe needs And the capacity, a point increasing. bandwidth is approach is are of I rational there a amount limited think marketplace there's a Spectrum. recognition of

bigger was that think the from us. I takeaway

very urban pretty actively on-footprint It's to the of commercial, radius what because and they're the it an not. have residential to back the footprint wireless almost and us access the between they're at capacity in mathematically which fixed look versus impact sit us. footprint and and on of sector suburban us off-footprint for And in where then difficult where you split a makes changes rural additional would and for versus it geographic day by terms and take of and into availability terms difficult for be that cascade marketing

it rational that thought. it's in piece that's a it bit we to terms the I should of But existing would like. I we've way harder just reached, thought the consistent what is always with it's have and did than positive a our as little think capacity same difficult that been I timing we impact that lot But and is you predict and been sense said, where thought what footprint. was more on the some of Frankly, that made it I took

Operator

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

Benjamin Swinburne

a for sort a ask want CapEx, industry and then Chris, on about growth. Jessica EBITDA of you've around long been question for the I time. you cable Chris, to

that investment XXXX kind just competitive industry aware in curious to over want sense it are priorities can over time. a I your dynamic because of I'm just guide made and felt you're of evolve you change why out time. sort And So know strategy you to

extensions 'XX. the done seems over work guys evolution like you and can have disagree, like prioritized seem but getting line did by it you've it -- And that you

thought might 'XX. definitely it 'XX, So slip we into into but it's now slipping I know

understand Just wanted just availability to thought or to a equipment there, decision? of kind was process if your that tied strategic

'XX there's good is then, EBITDA the OpEx. you've investments a made expectation given that And for year growth in Jessica, Charter, an

to the would think business cited ex-advertising. 'XX tell QX appreciated. I Anything growth financial help can think in be in us you you about for X.X% performance us

Christopher Winfrey

Sure.

right, So leading provide about that opportunities people trends Ben, call, typically, And we last listening think the is projecting only multiyear CapEx investment the into the a have. we capital of I had feedback earnings would we in been your shareholder the difficulty were you're never given significant having about to guidance CapEx outlook, historically -- and provided we've we've that guidance. long-term

of unique build is the come around the XXXXs rural investments, investors have need and the generational. magnitude very of that of articulated were expansion cable to I broadband size returns these outline Jessica really a see, have felt very those to; opportunity already unique, a, often. we The But to b, and since opportunities and subsidized think and which largest to it's are footprint that the have And of we committed what don't provided.

what We've that that do single been we've spot. past provided years, X essentially the in -- it but providing to over a information, all

cash that into around the investment exist, for So is wrap this about, all there people growth. go what are is both on a and setup free flow perpetuity attached quantum real and that nice to which investment to the that it that their that doesn't could returns heads is

maintain to a with competitive to that the sure to we're we of value there the and chest and posture, so our flexibility to of that make returns our like And preserve close both to keep shareholders that was cards people typically we here our making. the us understood investment trade-off were our while felt

the a free we're balance responsive there's that so make along shareholder generate having value to the decisions the feedback always that. take comfort making flexibility one long-term to demonstrate with to and right so we that way people hand, long-term can and sure flow the And between here cash

upgrade, longer, so In line little about prioritization. pushing certification which taking or much the the over was a X.X DAA really DOCSIS prioritization for time terms the of the of is of It extensions rollout. the wasn't about out line DAA it bit equipment the

the you footprint sure down do so high we more that catch-up what a make under high the DAA certification split of And could integrated DOCSIS process as to the pace? much Or the we capabilities we had which as so do allowed to that just we time. slow rollout an and the move you distributed the with is, the the gigahertz gigahertz call sure X.X for a of were access in DOCSIS should keep CMTS it over of tad to that that architecture footprint can with environment as it trade-off having the split was X.X original of make we latter to upgrade well X.X, full of X

forward, that. years of to perpetuity. -- best If capital. is thought understand see going we opportunities show to doesn't we're level that that view that it And spend we where if of -- go do into course, people to capital But worthwhile to our doesn't on the from make was expenditure of sure it capital couple of a pull we'll, caveat is we get into now, -- this higher

Jessica Fischer

Yes.

I the not On I EBITDA give but of think performance I'm guidance, the XXXX, few EBITDA can guess inside to talk we going things. about

So tailwind. you do have a a advertising year political is that

an in marketing, We X% we you made fully absolute X% might on we've will And have and serve sales And an from expectation range. outlook the think expense that have in we'll I employee basis. the growth, perspective, essentially it to be in is the lapped to to investments population. but cost keep some -- flat my so able that be small

across I costs at expenses be -- look all our remarks, in and areas the service as identify efficient continue capabilities. we more sales taking and And can impacting without said a our my where business we're levels we to reduce

we long Internet the to strong and be growth which and we long to to EBITDA long be that we the what you to EBITDA the be of as term invest sort on into coming so maintain need year able for environment what, to the in this want is in continue fully term, growth should in to in And understand stronger grow term. growth order able note, customer return focusing to to a

to So in the dynamics background I happen. think growth make happening where that we are the are. That's

Operator

Our UBS. the Hodulik next question will of John line from come with

John Hodulik

through and been think the August? follow-up couple -- per the recent on most One. moving rolling how I off relatively of towards 'XX, think, There's customer. It's of about in for the of we Spectrum quarters. one of growth a But in progressing terms a the last revenue should parts components, data Just increase flat especially pricing lot EBITDA with

how -- changed laps of your pricing push you sort market given landscape And one. you midyear? do broadband the continue can pricing we in to Number as part believe Or that competitive have? new has

then subscribers should own market? strategy, driving the tell of as in and anything mobile in can And measures you the your with of add you connects expect is new mobile capacity? doing build-out churn to terms of taking of you about you what the new terms also Is reduction? some just to anything churn And proceed you're then or broadband really change in lowering us on it helping sort

Jessica Fischer

Yes.

of it customer factor per ARPU. flat John, So When average penetration. the is biggest overall, rate you video that's revenue look the I'll with keeping start at

video customers So the retain extent that there can we we which the package what strategies and matters to is have. pricing amongst

levels. even application to ARPU continues rate If mobile you little the made pull pull remarks that's you Internet grow of you that quarter, than that a on Internet can out the grow. continues One higher out Spectrum the to when even a and consistent or I And in sort ARPU, see historical at you isolate

it On last on the about talked mobile the side, call. I

line course number we've is more in of the free offer, the so that over in we steady it have lapped lines As you was the of -- sort have than of XXXX the -- XXXX. system free because

So relative you'll proportion the lines. And of also of a a allocation as to Internet customers free to over base have, the just paying math, steady impact the time. you'll more see should in as that mobile matter over that the

the think So know, pricing do don't you I talk about power? I want that's piece to Chris, there.

Christopher Winfrey

can, you as It it your keeping is ability and the both long-term changed broadband, overbuilt you In in as reduces our views churn likelihood view Sure. as to attractive still fundamental your and candidates. our reduces somebody enhances grow, that's long hasn't objective. the that price that an term, low

our So views haven't changed. fundamental

inflationary To pricing extent grow. had ability. lower industry, to It of as across been view and I it need that as from increases doesn't ability not is the that most part a we're immune that inflation. and positive and to But best doesn't to we've that we've capacity that, it long-term our we to said passing Having that our question for pass pressures, willing the mean the is mean through to. we're through an the

growth well to there's that EBITDA going, so a And as so maintain in that engine into matters it an we're that shareholders matters in focused it here and us do our we expansion rates making that and sure can balance environment and on that where investing much parallel. keep to we we're

I a think position there's good place. balance not think overall, only And good but position. a relative in taking that's a very So a I -- in we're

that different of across terms a the recover you've their there's business. capital-intensive there's the as think over moving to cost and that need It's seen real overall sector along well. a up demonstrates prices way. In to And value I the time the product market, operators

churn, broadband then and of The has -- place as of been far, John, really so you material significant highlighted, reduction last that question mobile mobile. to And on the those contribution is very takes churn on attach customers your factor amount business. mobile a a the who biggest

today. of it's base two only I'd you our mentioned, I And As pieces. XX% offer

on side, is reduction. the positive the dramatic, is One churn it

just there's inside -- the to still that base. exists self-selection be that On balanced,

what's our base So of want big has that don't Internet upside. relatively portion and there growing a small to the still and be on I benefit we overplay careful

mobile those -- selling mobile, new Or mobile is The we connect new connects years. driving Is attaching? our from comes that customers job call Internet new actually acquisition the mix do is adds? a gross that that of risen better because and who it because into center take over has of percentage

that use continues In hold products of work this only convergence it's environment the opportunity, for slowest to One, It's together not seamless telling in our our of of reduction, replicate think as so overall many these you connectivity, have way but I moving the I driver churn comfortable a but and Internet, Spectrum the as big think and take not different have been to a parts, and you can't ability fastest the backup yet XG portion that service of is network radio. broadband the powerful. new competitors where combination that's our I'm sales WiFi connectivity it's

doing ability drive to today over the just not which acquisition is already has it time. reduce to actually but think churn, I And

still And but exciting. early so very we're on,

Operator

the Research. will question line Supino of next with Our Peter from come Wolfe

Peter Supino

the of that historical high Slide struck investment. even wonder as could And on and couple passings me per cost ARPU assumptions and subject your fiber to you front. in forecast discusses passing of penetration have core I X,XXX about XX And to core to for expansion. relative I relative that of X,XXX. your a if growth in questions share

for we've since over the of a on on core wireless money to and over fixed availability the growth services related of the big in then mid-band. note, again, seen last investment, over And was BEAD, years uptake couple BEAD moving but allocated increases

We of expect satellite Amazon's the Starlink, just more in product. availability but increases services, LEO not

if I'm is if that moderating in that penetration so for wondering footprint BEAD potential affects And all? appetite outlook and at your your

Jessica Fischer

Yes.

passing commercial related is So passing. What on you there and I'll between start per cost enterprise mix the even passings the to residential question. see and

drives say, to larger amount lives $X,XXX. is happening closer that a per cost the included What's a commercial the in number, that a gains a the And to give So -- mix information what passing you just to can I'm that to are model you little dollar trying are, smaller that, of higher. of that per get but going estimate that we're there is reasonable inside there build. average of passings enough passings generate cost passing so off bit the to so that you be from to would resi

Christopher Winfrey

builds a line the mean additional penetration, in then on X which serviceability, is there. range passing, as other market that greenfield do. highlighted as extension And Peter, anywhere Jessica in The cost I XX% is X the very one-off extensions. where at penetrations for between some we there's it that's where a XX% and lower of types other can -- -- builds the per different of of And or than should terms customer penetration XX% calls or where that fill-in areas effectively be. a us or

been. So the really always They are very, have returns very There's there. new nothing attractive.

satellite think years the tied views low I let basis, start access expensive -- wireless somewhat earth in LEO. X it needs I because standpoint, to if CPE our to as told of me a is the This that, to on but LEO, every a -- to be network that an you to fixed X or fall BEAD burn about business a asked me that's up, tell Generally, needs on you'd And penetration. with the was going month-per-month the it you from to and context orbit priced with offering ground our pretty be is. expensive appropriately and capital-intensive

where fiber-based LEO has is good but network in be think typically to I certain it's use going deployed. cases, our really a not

in not terms something that risen thinking penetration. really and it's of And too so has much our

price I what built already we'll ultimately in a for a low service low achieve. for terms into you our shown subsidized expectations into what it's at price or penetration we've of rural and But our and RDOF were and inferior for us compared access, can have lower quality there's we'll that. models BEAD think feed incremental wireless to Fixed low market that and what

I so that's reflected penetrations. think our of already inside And

at If approaching where the year. rural half a XX-month just passings, close where to XX% the within you mark, subsidized get we we're that our in initial of about think thoughts

RDOF there's and way than stronger ahead fixed there admittedly thought access that, wireless X now years was we're penetration would terminal we X, ago than higher that at despite I we an so those the And what made commitments. think of presence be when the fact

a ultimately all -- don't for big of And weren't factored where aggressive to terms our to about terminal overly what view say, round think thinking. I way I all into in of we So it's changes we because we'll in penetration think assumed. our it get

Jessica Fischer

provided the what see and XX% -- mentioned of a we XX% growing the so mark. We rate at But point. that at the or XX-month than can about all you we're good as or still cohorts in less we're seeing, that plus at

though even it's going that and seeing your the seeing as vantage. We're growth reached get in So at not markets customers additional growth. to product good still are we're not who you've those

Christopher Winfrey

It's early it's but going off.

Operator

JPMorgan.. line question comes of next Our from the Petti Sebastiano with

Sebastiano Petti

up just the upon follow environment, competitive previous to wanted on based the response. just I

quick the impact XQ the seeing of Are as on non-fiber that as overlap wireless to competitive in in update thinking stands that. about in January. get shifted to well your the fixed Is and that help somewhat Any . And has just in fiber -- isolated or on well persisted the terms is isolated in your any year? environment impactful Just that -- that X-gig terms you territories? as perhaps be overlap it of we for a market? follow-up can exiting

for update offload next how some the quite about with how as well other several perhaps a Any on thinking CBRS been on CBRS peer you you the team as have strategy build-out, then over markets. is along the live Philadelphia years? as testing And and your while, obviously, Comcast perhaps but in their

Christopher Winfrey

there, lot we There's go. Sebastiano a but here

deployed, nonfiber somebody where time they've it's that had and more in in view It's than nonfiber an because and overlap. both impact, the they DSL. alternative wireless first it's overlap fixed So fiber has acute what it's as other the

the novelty And so overbuild immediate has a fiber similar to when short-term it it's a the is that has factor that into footprint new an impact in nonoverbuild marketplace.

impact it there. pronounced more So a has

the impact the as had you overbuilders impact -- But fixed on the wireless them tell has well. access an overbuilders, fixed wireless would I think probably wireline

it doesn't territory. pronounced overbuild just So in an an much It's impact it's more that the in exist. have doesn't area an not overbuild where

terms we in our XX-K disclosed think overbuild. roughly as that it's XX% overbuild percentage of I today, in Our well

few we're it dictated as access radio pacing things. we CBRS, in market strand thousands into one by that's with and and And and point at this going another market on is really of relates a the then that And some of active today, very year well. to expanding networks deployed out large are and MDUs fully

And and is good The is deployment. economics Verizon ROI-based strong. with are an relationship our is One this great.

more will the it So But the there we will returns the get. returns there. be attractive when more deploy. we penetrated be The become, interestingly,

clear And is a CBRS perspective, return. exciting. a deployment mathematical very It's so capital from of very

as the has plant an exciting. just activity deployment It of active capital on have about environment manage outside so we're to terms fully split of those factors pacing high where the But we're deploy great of that upgrade all construction much to it. in deploying think CBRS. we're along in and in are, and we networks, It's much as way a we it we But way new a return. going

which market and have of employed in strategic a on depth area agreement and is we that's great each to specific utilization the a the geographically attractive Verizon that really function we us. at with today, so The relationship

those factors all timing. play So the into

Operator

That was over Stefan now call I'll to our back question. turn the Anninger. last

Stefan Anninger

operator. everyone. quarter. see next you We'll Thanks, Thanks,

Christopher Winfrey

very you Thank much.

Charter Communications (CHTR) 2 Feb 242023 Q4 Earnings call transcript