CHTR - Earnings call transcript Q4 2024 | Charter Communications, Inc.

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Operator

Hello, and welcome to Charter Communications' Fourth Quarter and Full Year 2024 Investor Call. [Operator Instructions] As a reminder, this conference is being recorded today.

If you have any objections, please disconnect at this time.

I will now turn 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

we to there in you of would that to remind or results I to and like Various carefully. uncertainties risks constitute that make and encourage that concerning anticipated to statements forward-looking may plans and this predictions, remarks call cautionary read actual differ them and filings, historical from risk which results. on cause other are expectations, statements SEC prospects are subject contained our we you factors number a

Any and or forward-looking obligation statements update reflect undertakes revise management's current view to Charter only, such statements. no

noted presentation As a a unless on rates call and basis on are growth calculated in the reminder, year-over-year all specified. this otherwise

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

Christopher Winfrey

the In roughly successfully. turn, of XXXX, normal we Stefan. ACP Thanks, connected. of former managed Program Connectivity the Outside of customers kept Affordable we end XX%

Spectrum million Spectrum grow Mobile the X fastest-growing in connectivity We're XXXX. U.S. the added lines mobile fastest at rate. the We price. with business at a in Mobile over the rapid best continued provider to

deliver rural growth, and good continued by our driven subsidized initiative expansion activity. Our initiative to construction normal and passings fill-in

while In initiatives efficiency and to X%, we continued XXXX, grew growth growth, revenue our cost political full accelerated strong EBITDA year by X.X% mobile driven by advertising.

will unexpected our Hurricane There it's recently, subscriber natural and Late in most but across last impacting of from Angeles Florida; personal. Milton had Southeast; the early which financial Las these impacts, fires. disasters the work Central we and to broader Carolinas Hurricane so Jessica also and course, with cover, year year, this employees live Florida, communities, Helene are, and and

helping connectivity responded. to for frontline have how help. stay commitment employees and lessons center, of other are. And reestablish on how our customers about, proud Part in got their losing employees learned of along homes our traveling Really improve employees to to and is to better for of we to customer we countless despite and own communications including way. at some customers employees we put from frontline the commitment Stories regions from always Stanford, and our

As net and for competitive, of do to stabilized, impact elimination video well visibility against or be but beyond, new we the XXXX behind The look mobile year. additions than of to have overlap. to and environment had time continue broadband, now peaked appear the cellphone ACP we Internet last fiber we remains us. is this better and the

stayed the well meantime, still, for the In haven't we up sets us future.

initiatives, delivering all multiyear employees we including the network including Our tangible benefit to and execution, investment to to its and customers through brand Spectrum expansion promise last our investment Life Unlimited. tenure relaunched results. the and service, And evolution, network September, are

can already packaging The and pricing brand commitment effect our our results. With the recognized, of -- time through seamless making now new first, assets entertainment first you and of see take be commitment XXX% network, and market converged use positive better our connectivity investments impacts and our across to customer customer seamless but positive video video. and from service our from unique refresh our in

initiatives XXXX, long potential and significant investment we growth a of term. late number launched capital to our strategic In enhance communicated onetime a

drive network XXXXs. a video generational the largest the our of business. largest and our which XXXXs, wireline wireless physical the since broadband of near-term Market-leading free investments unique of and our transformation, convergence these exciting nonrecurring industry help capabilities flow include the While put and upgrade on the an were will connectivity expansion investments, the and they set cash since growth, temporary pressure

also will higher have slightly XXXX, capital than a be level but year investment investment. this will our of XXXX key

strategy our where highlight for to time fitting coming competitively, leaves a operationally and the financially us is years. this So

have We in passings, million Internet, video the Spectrum fastest of network best fiber-lit shown as residential infrastructure, has of over with fastest and Slide and WiFi, XX X. scale the set buildings. U.S. miles assets the leading in is over the provider the on XXX,XXX and mobile a unique XXX,XXX product and SMB

Internet Of significant from wireline overbuild, competition course, we have of satellite our cellphone across all and products.

and allowing our to developers on cases the high low improve Product ubiquitous that and continues high require edge use the can The across to cable the U.S. of symmetrical power software networks though, in and developers applications major latency, product and network, with create multi-gig reliability capacity, rely deployment all compute. feeds,

we're well So positioned. very

U.S. In of always that handicap being services, have of against competing built platforms next-generation and the operators development enabled that cable the competitors. and have companies the regional despite the national been fact, global now it's fully deployed products

The flattering today amongst it's ability our And our for we're our now. features presentation own Slide developing very That competitors for phrase a best our wording to others, the and across is while itself. products entire entertainment. to seamless footprint adopted of of speaks is Convergence by provide new includes popular our unique. hear connectivity X seamless

underpenetrated to connectivity very converged relative are our We capabilities.

best capabilities a and customers that's entrants, or win. can term, prices. save whether you Having we've long hundreds have promotion the all-in But the with pricing packages, in year, in or of enticed value higher and itself focused even best quality isn't consumers the lower to the By best and ways new we thousands believe of services our best most prices. package have why time the for to a across combining provider a retail products will always at be try those network ability dollars to enough, by products and on to the even product the

of of packaging brand And packages. across our Together offers, that and advantage our goal seamless recent broadband Slide the is this Life our mobile pricing presentation refresh. entertainment the typical an of X and is under example with Unlimited value upcoming highlighting

we out value our to XXXX rolling hasn't that changed, our this look of in entertainment the But I so even video to the of up timing packages. quarter's spoke delivering steps the about year seamless in repeat value sequencing last subscribing call, that more consumers, I forward half on won't to of when first and priorities. launches retail fully to $XX and app and

and service transactions. cost ability gives Fewer and customer shown Slide to and search offer as cost satisfaction that always and That presentation. package the to Lower X our And of customer taking of in cycle creates price all business. satisfaction of churn lower in We've in that for customer retail. penetration. ensures course, service pricing, investing the Similar Better on video lower both a us service. promotion now proposition part And better a believed works we customer our lower mobile, for and us couple and reduces for is to growth. virtuous churn. with translates satisfaction customer customer high-quality Internet, produces higher which fewer positions transactions acquisition, increases at

if also their to estate credits our in existing service it difficult so made replicate. in in for why America, customer Spectrum we own at is make service will, behind investment us to our is with commitments their Employees And stand mark. investment real benefits to customers We wages, was marketing advantage. competitive XXX% commitments. An is committed also jobs a to we when sales our Our that easy already missed made local That that's the this U.S.-based, communities employees and developing and paying career you good benefits. using are and company.

a we've reminder, summary a on those X. As of commitments provided Slide

satisfaction. For employee years, efficient, AI, effort higher much our and making been drives customer work in easier and learning more investing now front we've machine which of and live is and

to those of the include automatically answering presented examples Some network, the on full and CPE when billing service, agent phone. an telemetry now which is account,

to is the they trading that's support, summarization, to helps more issues interaction. their opportunities. In out field own addition, get sentiment, customer the AI also on flagging to fix ChatGPT post-call technician the the addition improving handheld best before listening optimized conversation, the devices customer providing pinpoint call rolling AI summarization our tech. and even solutions, style to ChatGPT field the and assess recommend accurately And to technical issue the door, call proactive in also

And there outcomes. every millions aren't transactions of of have millions We year. do honestly, best

customer drives as employee So transactions it more better produces shortened tenure, therefore, result. and course, driving But can be and also can which or of a higher satisfaction reduced, transactions less attrition and churn. which, higher satisfaction, lower service, effective, be lower

together, most value which Taken the penetration, higher our lower a that unmatched to service with and products, us lowest allows pricing is strategy per positioning: the having cycle. customer, and best network, best transactions churn, service, capital have lower household for cost penetration more household, virtuous operating and the and competitive product

already believe I in on fully we've strategic existing enable streams today. better And our our investments for have got perfect products and home high future high-quality is output that Those employees. U.S.-based our sales growth cash made. execution and aren't and financial efficiencies will growth The always revenue investment. service and we the even passed flow revenue for have with products network, and in considered great a room operational return speed, financial of our plans But and with we're but not free in we've recipe per we assets

visibility This is we fully free and for team. return and cash meantime, profitability allocation a positioned dedicated philosophy. growth, growth It's clear flow a a formula. the improving customer to the hungry capital In company and with winning

beyond. excited So we're about XXXX and

hand me And it let Jessica. with that, to over

Jessica Fischer

Chris. Thanks,

number a I Hurricane results, September want discussing and early of impacts, to hit October. Hurricane mention Before that and which Helene U.S. quarter the results include our Milton today's in late Southeast fourth

additional storms. Fourth by quarter. and capital EBITDA in customer that results driven by include drove include approximately results million incremental fourth Southern Our $XXX storms quarter total over reduced not in customer related the the January. credits fourth do was any wildfires hit to quarter the in expenditures California million, related and adjusted approximately revenue, primarily to Today's $XX the hurricane-related disconnects XX,XXX

loss related Our capital include area, we We're assessing to recover rebuild passings fires. quarter expect incur to to impacted customers and and first the some passings. will expenditures and results still lost

some We've may been also have results. revenue. some when credits relatively will impacted our the and areas, of operating we isolate quarter that although first to expect providing be And impact the we'll credits report bill onetime offset first we customers in those quarter fires small. expense, incremental We to

Unrelated, acne an other new data and to duplicate of our clean we recently to and passings passings. up review completed serviceable identify extensive

presented passings by As million a for periods X.X passings. all schedule our total reduced estimated result, we trending in

our technology of the divided into operations. cost operations has cost X service lines, field been and expense customers new to requirement, because GAAP line Additionally, customer and

is to forecast items way that's refer to these the and results. in customers, them today cost our past how best figure will service combine to allied The I into reviewing expense X to them X when presented as as

customers Video residential on quarter. by with Including lines. declined Let's in seamless In Internet refresh. SMB, turn yet declined we the product. along we rebundling with we the of XXX,XXX, in Slide please September, lost by fourth launched and to improvement the customer Unlimited entertainment our XXX,XXX XX. driven added mobile, our results reflect our by does customers Voice the apps customers Life not in performance incorporating brand XXX,XXX XXX,XXX. Video benefits

addition hurricanes, the of higher the Internet the fourth nonpay by program to and ACP voluntary ACP driven drove among disconnects end customers. quarter In former XX,XXX the churn

losses, estimated For fourth some quarter of Internet and primarily nonpay churn. a voluntary impact total ACP approximately XXX,XXX

forward, believe to onetime ACP-related customers. are Looking past we we the our impacts

losses and and than hurricane and with pleased quarter year. last results, storm-related were ACP better impacts, which generally Internet customer exclude ACP core our Beyond we fourth results were

to continue footprint. our compete across We well

new financial pursue our we initiatives. growth, to that product and subsidized and customer discussed, packaging, footprint roll pricing initiatives Chris converged expansion, and continue evolution, including As are to including connectivity network intended development drive

service As we of X-by-Xservice of year, this X these we X markets. launched Cincinnati. markets, in X Kentucky have x launched X-gigabit speeds symmetrical markets our in X to later year. and launch of step year-end, gigabit Earlier we And in plan this additional X Lexington, all

the data In product, Demand Internet residential quarter, by data usage reached fourth our monthly grow over continues have traditional Internet gigabytes. customers for our as speeds faster to don't usage video who XXX grows.

new advanced by our WiFi router. Our WiFi improve, continues driven product our and WiFi also X to

the X% of Our fastest which our WiFi about and but Spectrum remains only product, fastest-growing United offers connectivity the passings States converged mobile is speeds. service in Mobile, including supports overall at the

passings growth additions to growth quarter by subsidized well the Turning the with those fourth from XX,XXX in the quarter customer XXXX generated growth XXX,XXX net XXX,XXX and rural subsidized last passing by grew in in rural. XXX,XXX in we ended over total customer the a nearly of rural XXXX footprint We XX We our passings quarter. should rural as benefit And XXXX. as passings. months.

construction in rural continued nonrural fill-in and year passings our We growth $XXX,XXX expect activity. in of approximately XXXX, so biggest addition to far,

XX. Slide quarter results Moving revenue to fourth on

year, promotional last and customers higher Those video Mobile. $XX offset step-ups, principles revenue. declined rate relationship packages revenue costs, Spectrum programmer the to grew growth were the factors million by our apps streaming partly residential X.X% video rate residential given nonvideo per Over of residential of $XX of adjustments to customer customers, within and hurricane-related by base, within a X.X%, year-over-year mix by credits lower-priced growth and required million which customer be of of accounting while allocated netted

Slide X.X%. revenue As residential declined total, shows, in XX

given grew commercial. commercial to growth. Total grew revenue of X.X%, revenue of enterprise higher revenue when X.X%. primarily by X.X%. Fourth year-over-year, by by Enterprise XX%, quarter revenue Turning political revenue with excluding X.X% driven revenue wholesale monthly adjustments. grew growth And SMB advertising due SMB reflecting grew by growth per X.X%, to by revenue enterprise SMB rate customer revenue, PSU

due local challenged to year-over-year, And market. device Other more advertising and fourth by grew when by and higher hurricane-related Excluding consolidated a X% advertising driven X.X% mobile X.X% political, was in by sales. revenue customer quarter revenue revenue excluding XX.X%, and credits. advertising national up total, decreased primarily revenue

streaming Moving an X.X% adjusted by of by mix grew expenses video lighter a principles X.X% on Slide year-over-year. in X.X% higher video required to to and and total to the fourth allocated $XX higher cost, to apps programming declined quarter, million accounting costs revenue, with programmer decline expenses XX. packages, by customers video operating offset be partly due within EBITDA In netted Programming rates. year-over-year and along operating which

customer related X.X% higher increased costs. year-over-year primarily by investments, higher well mobile to driven Cost expense higher direct as of labor service combine sales, operations device service and field given mobile by XX.X%, and sales as from revenue productivity political operations, including costs lower which to costs customers, revenue. advertising our declined Other technology XX-year

as Life September. driving we Sales X.X% our acquisition focused and Unlimited on customer relaunch grew brand by and marketing costs given in remain

Finally, other expenses by declined X.X%.

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

ahead year the we and full this lack our the year last look primarily XXXX, Internet customer prior but impact that headwinds we the we to due didn't end of grow As plan to in faced to advertisement year. of the the ACP, year, adjusted losses, including is year full political from EBITDA

net $X.X shareholders the a larger this generated to compared loss EBITDA Turning billion last income. Charter of year, given the billion net income in higher attributable period. prior quarter quarter's We remeasurement to in $X.X and adjusted to year fourth pension

billion, XX. Slide in totaled and to billion and quarter, rural $XXX totaled Capital opportunities. quarter. residential our construction market network million subsidized Turning fourth fourth the Line expenditures commercial extension about across $X.X by initiatives up $X.X continued expansion from last year's driven greenfield fill-in spend and

billion, to driven totaled $XX.X lower and excluding line given totaled to spending, higher line increase timing. $XXX less billion, spend. infrastructure extension expectation million than quarter expenditures, Fourth for extensions, our due to capital evolution capital $XX.X $XX.X scalable year. mostly due and was expenditures than billion, purchase $X The last CPE both billion higher timing by original XXXX about network

due XXXX $X.X $XX including bidding, to spend to to evolution spending our of year early beat billion We extension of approximately are spending any billion, On excluding expenditures provided Slide through the expect still appetite regulatory stages we a spend network capital line billion. bid XX, capital of and for current the as have XXXX, reach lower $X.X the expectations we associated extension line and conditions. approximately approximately we've with program total in

outlook years changes retiming total Our our across current outlook, and slight versus multiyear unchanged across largely CapEx is categories. prior in with

extension even line expenditures of XXXX, capital to total expect inclusive We after decline beat.

dollars And completed RTO a our still be is years X to than XXXX, to the of starting expect wouldn't expected million XXXX. of few be per end years build in year X You by hundred more ahead schedule.

the expect detailed initiative project XXXX out total capital over our more plant XXXX million versus network reach now plans. our evolution of previously, to We billion the and to given finalization $X.X period $X.X full walk

run we be spending capital dollar XXXX, beyond of terms should spending. be Looking evolution per meaningful And a trajectory, in capital conclude, after even expansion beat inclusive our downward $X year. our billion rate on expenditures total initiatives to below and expect capital

highlight, $X share expenditures free $XX of And to approximately on share per on give $XX that its we the reduction less in while flow always equivalent capital with then our annual on own that count. to cash billion for prioritize flow first than opportunities accretive concern currently to capital us today's Just free that XXXX XXXX, buybacks, capital expenditure in from cash organic based M&A in and and opportunities organic is are expenditures no outlook. horizon there billion

decrease totaled higher this working and of of The was program interest, fourth quarter. year's cash flow compared supply million, cash primarily larger $XX the a cable last and higher to in capital $XXX by decline free taxes approximately capital year's implementation by a driven chain cash quarter. quarter fourth benefit driven partly by Fourth million EBITDA offset expenditures, our financing

Just expect calendar a that payments $X comment total our and cash year tax on billion under will legislation existing cash XXXX We $X.X taxes. currently brief XXXX tax billion. between

the than to the debt $XX.X in principal. about XXXX each billion of finished maturity credit and billion we $X with of years year. our $XX our December, XXXX in our XXXX. next billion refinanced financed In of -- tower, refinancing, X maturities quarter that After per most We facilities we less are extending

Our by attractive rate very at driven cost fixed weighted average remains of X.X%, long-dated our profile. debt partly

Charter price totaling repurchased $X.X at share. the per XXX,XXX run we interest average current shares million Our fourth Charter In an is and $XXX units, Holdings billion. of $XXX rate annualized quarter, cash common

and adjusted pending EBITDA Liberty XX-month forma of net the at moved to transaction. our down fourth of end Broadband quarter, the of the pro X.XXx to X.XXx last stood debt As for ratio

and our forward target of vote for buybacks, open midpoint February now are our shareholder ratio pending still to scheduled transaction. forma we 'XX. Broadband the pro may transaction for the targeting leverage X though the pause program market decline look buyback but Broadband Liberty resuming leverage range, our Our further the to given Liberty We X.Xx for following

growth, laid and capital as platform for this are growth flow As the last materialize years. peaks a we invested the over strong out, which next -- poised over year, for business to our we we've strong several cash And in returns. expect the see shareholder free spending across

Q&A. it with And for turn will operator the over that, I to

Operator

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

Jonathan Chaplin

CapEx. A question on

that that based changed is the And up. see extensions line us So remind for the to the what us think can is you new in of DOCSIS that footprint expect upgrade end I total I'm is high for network what I of of of will you pace upgraded locations? build the then that end be you locations reduced how XXX% if have the the just -- the in is footprint extension and Have line XXXX. state it's then a of remind down, split nonrural by guidance? of spend the wondering CapEx, a but portion rural terms X.X -- will you the number on Can to

Jessica Fischer

Yes.

passings lower that So that. on start with our Jonathan, bit Two bit And sluggish, expectations meaningfully build. would remains reduced commercial I'll of the are line market a back growth housing outlook. happened I inside for though a greenfield one. our hasn't that, our even given things the pulled say, We've proactive extension

but is correct. there, rural We few a we the total had down. what more it's think see than have number you before, offset I do So passings

split As changed. goes, X for steps hasn't far the the our upgrade as network plan the across

distributed Chris, of gigahertz. architecture, the X.X. X.X XX% that to X.X that moves you it guess, think a really you gigahertz, still will follow-up at to I that, want access I you then we're is, XX%, know, And still gigahertz, XX% DOCSIS don't have about but if that way in ones. on talk So that that would to other moves be up

Christopher Winfrey

capital And high extended X.X incremental a to ability expenditure. changed is combination we're XXX% be very use real X mix from there low, the hasn't terms if where will DOCSIS of of increment it look, and Well, any on in DOCSIS going. the the split,

in enterprise would we go as plan. on fiber we really and about as or these The able good SMB do I putting demand which add notes, fiber So although mind, is, OLTs to us the in to residential drop similar as in be one allows on group, but well. keep to a an demand, feel do we're to thing through well, that

is terms network capable go. the wherever in so much of And things very

maintain all radios benefits through deployment, you still CBRS the You which very through well. going in hang the allows our network, which is power that to have you

Jonathan Chaplin

I that, at usual time. XX% assume to Chris, happens over CapEx within less $X business that as than that assumption all X.X The ultimately And is billion. XXX% goes of

Christopher Winfrey

get I'm environment, need that billion have you over not CMTS have But node when into capital the to be and splits you'll took amount -- time what less and sure when one, take that is expenditure And that nonexistent. benefit going if Yes. place. historically the the will is two, place than $X you of that upgrades

capital into but to all would want, segmentation can actives, those and doing to been extent You have required. we've that really areas that's the reallocate the to you that drop-ins spent

within And it be could so the [indiscernible]. it's done

Operator

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

Benjamin Swinburne

have and but about your can't in -- the impact and more broadband business you that's think rural video thinking the might how broadband It customer results Chris, consider if of 'XX storms remember this footprint are then, obviously You versus I we you happening 'XX a shift little selling ACP, wondering and you'll bit your a creating metrics. about that the you. And guys when we grow are you bit a can XXX,XXX no time that you about mix of can some it's -- offers maybe wildcard, I forward. had behind Maybe broadband. as are what's and with I'm ACP-related inside your improve kind more last you inside move could into metrics in subscriber you 'XX, subsidizing talk numbers outperformed both like and subscriber base sounds guys losses think or just

Christopher Winfrey

the ability we're net that confident from sensitive to of loss perspective, about net between our also time periods [indiscernible] Sure. fact midterm the really to Internet. But there's Look, in grow gain. Ben, cost outlook we're particular an versus

to And ACP this comment short-term won't and huge losses that's year, benefit. we not to big back. of adds so going or impacts gross a have so on the disconnection I'm small But

but and And impact, fiber a had little Internet there I that peak seem better gives base overlap, visibility, cellphone of there still cellphone competitive last as to overbuild. will in and gotten a we that be fiber terms of The mentioned declining we Internet have year.

So you then add our on to more that data the investments entertainment. in coming terms effective that The of network and what's fact to growth we've a wireless seamless made are, rate of over capabilities we consumption and in time, convergence already rural then than evolution way passings, the in increase. to then outpace competitors the using, continues

and step about perspective. a people to ask just from think back it I consumer

of showed customers connectivity, faster today. available we unique that which making products And we similarly of and the of when combined with have slide save point is products. a set was mobile. I We are hundreds dollars Those everywhere Internet sell, the with we thousands

its time. the So to win like and and sit, where value I product really I our connectivity seamless in expect marketplace we over

In we better next is huge. the a And inside -- all not things, not other give than this through but last to be ACP going better these losses we're short-term year say having pushing were meantime, I'm we this than year to outlook year or year. for

you rebundling with a are benefit -- of net fourth the additions in to that video and video, our connectivity function and simply our -- sales. then saw the So quarter on

away customer from time, And actively attaching broadband of a we unconvinced product was that that were otherwise be because lower the high asset and sales to selling relationship in apps because a value had video been existed our at direct-to-consumer elsewhere able an over to had would that, cost. and repackaged to moved be through that the commoditized, equation price had video a we

for away broadband to because years, as so a moved benefit from was us a be benefit. not being maybe our sales we And had what to used concerning video attaching

money, were moved apps allowed a way environment to that said, to then way packages the way packages being full use we an our more expanded customers a where a customer had packaging had That to direct-to-consumer of of the we to retail and that that in and that value did for. now those expanded any value Xumo, looking discovery, allows we other to DTC of take thought which and combine your that single the as and as of you service the you to once that part combination as utility have get attach apps we're to unified provide introduction the actually of the created flexibility advantage separately all a well take in as a save search you and place, services in valuable of

That's to only get going better.

And beginning. just the that's so

our create confident entertainment utility as the for but the out We in beginning add package, rolled yet. the felt a overall we new together just enough way marketing seamless September back to not selling haven't subscriptions in full into set with and of broadband really to packages But relationship. late to start video, value broadband video actively again

passing, value a and September impact us from to from and standpoint. to price, lower Spectrum of acquisition on offer of standpoint all promotion offer packaging lower a products a us retail price offer well move both X pricing both a did and were really taking has as and that on based And mobile in the our which we as the and you sets short-term X broadband, video, to at allowed to when -- as what with it offered at or allowed take promotional between and Internet we roll-offs retention abilities long retail on that our you lock from bundle

me on enhanced. services, is only better. And outlook and that to to we a quarterly over doesn't increased going capabilities video, selling going. it's feel saying get that's our that about where mean just not these as It's So wrong. capabilities time, It's our good don't rebundle -- training get

video I to not think And hence, it benefits, [indiscernible]. but the also just into broadband. gives us real

Operator

Next Moffett question Craig will come from with MoffetNathanson.

Craig Moffett

I'm to in X squeeze going questions. to try

you point doing given you whether the just going something I'm And that impact. that been because to essentially having of wireless couple about strategy strategy through is you've you had pursuing can years. real bundling think comments a to way to the of suggests or obviously leave business? what the importance a strategy your meaningful your broadband the wireless evidence topical just the that It's First, that churn it's for video, of Comcast aside emulate -- convergent else, that is already for going they're to about try said

on about question opportunities. you because how commentary bigger with And operator? mentioned of growth combining the ask frequently the think you do opportunities? so with growth inorganic so organic to also have about of getting then get And discussed a topic being Comcast, often. you as we possibility cable the about think do Comcast, I the How

Christopher Winfrey

Craig. There's a good lot But in there, questions. they're

the the wireless and from mobile that attached. broadband the acquisition actively really convergence, additional we offering standpoint what doing relationship continue line, and were lines but the what was benefits were So retention you used, to time back is using attach, driving -- that to do we Spectrum offer to it if at additional which of And free of mobile mobile line. a or is think and one was obviously,

mobile. using And broadband benefit really of for so were we the

when a lower place, convergence along careful, in seen benefits takes of obviously, had mobile that's seamless rate to is bias so broadband we and was we've we saw of it, versus they and connectivity, due the it there's much had that customers churn that been when not. those the some what the self-selection way, And some and there, why

customers there's amounts report we've is that, And of on all why it's that's we've But not always recognized a and and been self-selection. better benefit, that saves and it careful Some clearly heavily. to a it's too money. not tremendous clear and product, self-selection out of that

little What that marketplace the now use can in mobile line product. to pricing Internet decided at pricing and is drive need does packaging free, Mobile we widely and It use SSID we through and a is we always Spectrum to now it have well as the with for the and attach recognized, and retail which Spectrum acquisition brand capability recognition $X and brand we we has it And as, and can did standpoint. have a a connectivity flip new mobile the retention, recognize acquisition doesn't it better first improved the for Speedboost. of be bit. priced from speed superior Mobile, It's we for at when both fastest or

Spectrum use in we've but them, to enhance doesn't works bundles, marketplace active think it's well. to but But that call capabilities mean the our clearly X going have it have That's we I can X, early unlimited also benefits. using stages, Internet sell-in. like I'd to Spectrum for It and as still Life stopped the

to the The think we showed slide in else strategy have unique their really we footprint. that I a that as was point So in presentation across deliver the entire making conversion today's I capability works. does nobody where

matters, And do does, position think in think which the it convergence we that. to that so we extent to best the we're

Jessica Fischer

level. additional margin plan of we the comfortable more mobile business. of margin address mobile how of as It want just business. to to customers, XXXX subscriber, mobile make really, at get And financial benefits of in but not has and EBITDA By a on the additional it that customer I driver there mobile that sure it's we as the drives the cornerstones we therefore, for key does across drive own. growth only with the revenue, also we but attaching sort to because that its sort broadband of growth one And well have margin all the inside

Christopher Winfrey

wireless But was with doesn't can And and you think capabilities What that. a grow think with I saying that's it asset I'm products significant. mobile think the use not drive growth together. we're just significant can it competitors that set convergence of to as not going money. video on add just to could become also to to also But lot I Ben, that, that as asset of hasn't again. to a you mentioned mean And mentioning an video, our unique case. It's wireline us -- I most to a we find really become been to save together and of to video, it's unique and convergence, about to the compared to customers

On there. chatter there's of know the lot a M&A I front, out

Craig, strategy, has dependent M&A. to never been Our really it's value create on

operator. do growth And put purely really great value an and In in from shareholders a that by you from moving fact, perspective being it's that we been for do perspective. organic how

by onshore good great hopefully it saving money, providing employees of customers capital. You being that do a and allocator with lots of service, in-sourced doing

not opportunities rest Cable, industry, traded owned another Warner good the they'll But family or acquisition by think, where and and large the And controlled a that being there's opens company cable of decide. there. operator think out Time family sit back I it's like also, over This time. publicly when you all is about it,

businesses like families that really the And these to the in it's decide they'd family-controlled so who time combine. get to when or

And I there's I the also wider, for is would think that chatter door you wide it's don't I thing that a other the tell it's lot open. M&A, of think

that transaction M&A any But respect to about things be it's -- value. do of done that it's it's any think for It's the to strategy. core strategy, helpful and you in that our it not in have be administration operating our it a the our And that's the has as organic that you potential good anytime, only past strategy for well. create customers can in jobs. been not think to terms in when get not to we has of add-on ability way drives I growth, our to good

Operator

come line Our from JPMorgan. of from next will question Petti the Sebastiano

Sebastiano Petti

costs be and have we that. about, with come Chris year. perhaps, OpEx If should around probably sales and the that comment EBITDA, Life talked that Unlimited Obviously, different Spectrum as do perhaps you ramps you across Jessica, market growth you what there's buckets more could color Any for just attach expect level opportunities, creates the and assuming?

get of Obviously, you that bead well helpful appetite improving guide. it costs just trying thinking would XXXX. And the CapEx across how to about of or the you backdrop that bead So buckets shareholder any that frame the limited network tax maybe include some se. little -- think a an helpful, about should maybe just would in policy improving then about efforts? of implemented to How not against as be maybe of maybe per does bit was your you're changes perhaps extension thinking bonus depreciation? accelerating we But maybe returns versus

Jessica Fischer

Yes.

on start -- I EBITDA I'll growth. So can

growth grow plan You XXXX. we said in to EBITDA

X a to in then mobile promotional pricing the and growth business, benefits I through see. and that efficiencies new Spectrum of rate other that the think benefits And in customer combination we packaging, particularly serve. roll-off continued cost from business, some we'll do there's in the

heard the that transactions and customer and about continuing we've of the have fewer commitments just from -- of benefits driving also done you As with customers. But learning with talk Chris some be of machine on basis see we per around I expect to that I AI, customer service generally the sort our think what of the about on down, programming respect, that we slightly acknowledging expense that matter In think that across there mix does to flat a customers, video side. to we'll and cost and lot. benefits programming

And what of results, the that's expect. so as on that that connectivity inclusion seamless think to the will customers a we the the take result of mix but ultimately that extent I or apps, entertainment products one the of dependent changes app be seamless

roll there's and to the digits, brand. given customers as a and marketing, drive you continue there, or rollout growth, low mid-single point the to maybe and little Limited sales grow Life of we're I In doing to out what out think more

so do sitting talk expense I don't where that's I'm And Chris, want on side. know, to you about... And the

Christopher Winfrey

Look, capital sizable very an our to been it it depreciation, team in or infrastructure important tax really but about. deductibility tag a X the all to don't potentially And legislation taxes if outlook rate if those has interest where obvious we'd or bonus cash going versus this whether that's talking actually, was go, have that we one reduction Jessica but we are of enacted, builder. usually so Taxes that allocation, is maybe if -- Jessica we're know is needed. where talking about

we what is infrastructure the the for all here do, build in traffic. pipeline these of the highway and U.S., that's applications we the And

to of don't all capital for and bonus and rate X, means terms good dollar for for customers good dollar for less make jobs our edge are projects in should profile of X think And a and X to and incremental, returns shareholders have which And on that very all that's attractive much so I it's but of projects might say on all can the I of the you for suddenly for really is have economy good get think been terms that very be from in things, interest return that enhanced. any communities one. be would been for and might the X more those depreciation, hopefully that attractive. it's our that deductibility

Operator

Bank of Our next come Reif Ehrlich question from Jessica will from America.

Jessica Reif Cohen

what us for a color multiyear more know you know follow-up early both that value is specific on on on step -- for is be guess you seems there for But don't what and quarter are what L.A., step down? any you to clear video first I even be were marketing marketing. customers? And your M&A, you call. plans give the then a for but give -- I you'd assuming said it read the video some homes Can coming I you're a is back, before working can

beginning remark And a national at made about on competition. you then and the Chris, global M&A,

Any would revenue? about give. just can how it or you Is with what like you color talk would competitors, -- you compete what can benefits get? you national So cost more you

Christopher Winfrey

Sure.

from longer widely footprint, that assume roughly perspective, OA passing really the XX,XXX not an grand so XX,XXX, of entirety have reported XX should and what's And is L.A. our large. that's million inhabitable. earned passing, for no that us. you that So the is overall In Charter there's that reflects passings scheme at and of

and home. near it's dear But to

it's, us. like said, to so personal I And

be our homes, of That become on we're be rebuilt for starting time, of taking looking we'll read customer over and will you And plans those it time, cases will take so many if homes subscriber in do, over that And out to them the passings, immediate. new relationships. out penetration inside you new area, we'll that. get Those impact so. a rebuilding of that's know will there's footprint. do exact and know and the I already passings So at

the who addition in once There to got are And customers do home. And otherwise, credits -- their obviously, through that, will we'll in to place throughout our be That highlight. way be will definitively [indiscernible]. we've they impact, that. which in along able as mentioned, call. that's clear if next a leasing for lost highlight policies earnings be Jessica will which But impacted drive, subscriber capital, we'll there to

impacts number And We'll to that and Jessica so onetime list call. other go just financial be similar of the and on next will a through do that there times. will

at afford not we have strategically otherwise come services from, to marketing which that money, way in than we're will allows those here amounts a going you I articulate concluded, look our example, so. that doing. our month perspective, positioning think sit video But the to a product The from that customers more and for Peacock, within video yet able and and including, significant a apps competitive to to of I'm standpoint, look, everything of package save not or the things that be slide, next when of they'd all are deployed, product

least a way we activated way of to that customers see and authentication for fully the as store push process to the mobile relationship. a once into customer-friendly, connectivity more to a inclusion, allows once for broadband of contribute got video then driving we perception consumer, at us, through the you'll the But for which go and have start that that's programmer apps into benefit and the consumer-friendly the ad-free upgrade a we've and version, but more that the us all to the have them is not to for unified just in sales,

is to that net X every One go as it to This of the with as but years, that even of be find about to obviously, partnership. our everyone, going X The to features shouldn't gain, worked. the led actually had this hasn't -- because to us. And way to is battle the -- losses programmers to we've we're say, is we cooperate. well really need along as, net that part negotiations game key a zero including or left the significant zero programmers a customer, and for try

difficult and product fantastic out They can programmer, behind with for every people. The single true behind here here we're good are the us to They us. brands. at our but to distribution, as have get value the can get co-market we Spectrum products way be think work that's form replicate. each the we And partnership that would there their as sales advertise other's is, together. very good is day a well help we And and frontline have them XX,XXX can IP. also retention brand idea So having where fantastic it work but for selling I that well

well very works programmers the as able revenue to additional a for they And to for they can time, actually product and upgrade a and it works ad-free for in the obviously, money, the us customer more because ecosystem. save version, are take they which much way that creates over better

sure where customer us aligned you to relationships. a connectivity works the So the and without around getting think really from to more our the into that, very sell marketing, are we're much programmers, trying incentives I that in perspective, see between can make any way tactics

But Amazon, mobile when perspective, we scale think against clearly, our us had -- about you recognition is we, local. if space, to bit think which there's you us competing brand mobile a scale, there's in national From more a video of I if as asked, the when more Internet think about what little tends Google. be services operators, Charter, the you

having to And about some think so across advantage, really there's scale. all where of our products, you can marketing additional

but sufficient. customers. we for today we're scale and I have better that, I'm We do not could to approved saying think it's that

that By think scale, save additional we comers money. could I having

Warner with on bring well in-house I as well. bringing contract the into from Cable more back way jobs environments jobs think centers we call that create onshore could good-paying that U.S. did labor to and House and Bright offshore as Time jobs, as we in-source

scale, in I for be consumers good So terms scale, can I be think think good for jobs. for we of in ourselves can of terms we

our less onshore environment to talked our actually an you to AI in-house and is these so national development have then you closer do about to that better if compete, enhance service capabilities not for additional to customers And a into And more more a could regional allow lower scale about, AI to actually jobs the per cheap. and lot that it you employees. for for AI to operator we've make the have cost finally, drive to you become and benefits think to extent to invest that, customer way.

go Look, on on. I could and

have is today, large, business. of doing operate We capital operate fixed But when scale, and scale high to a it. always enough well having additional network, beneficial course, you

Stefan Anninger

please. our last question, Yes. Thanks, Jessica. Leila will take

Operator

question final will Evercore Maral come with Kutgun ISI. Our from

Kutgun Maral

wireless. lens discussion Just from on a a follow-up the focus on maybe different M&A and

make you've with ramped, more You've grows But had your Comcast efforts on of quite that a stand-alone a mobile onto through basis your traffic change sense own lot meaningfully. that to network. as view scaled owners' there And also and migrating economics would business or I is a partnership? whether their know perhaps on a success

efforts I get just convergence pie don't had. naturally as limited much the you've we the credit pushback relationship, MVNO your of the and the that wanted your because on more therefore, coming that to get margins is revisit on are just that mobile the and there and opportunity you broadly success

your perspective. appreciate would So

And on just a quick rural. one

we but your as have that accelerate? rural ads still pick up [indiscernible] be there? are adds penetration around also And just other should passings continued assume accelerates over there and that Can sub were customer of? us should trends will you New help think flattish. XXX,XXX nuances mindful XXXX, about net sequentially, Or in to we

Christopher Winfrey

got business. business, extension the -- business. the broadband answer on to into way of the your think mobile it is when to because our it Trying was We an best question we really mobile

think for of We've CBRS. nation more is this We'll of our thousands radios our today. multitude deploying thousands year, traffic really CBRS, when are in of footprint, a entire be And markets. today our the business mobile that deployed for about already deploying you radios across in XX% so or network

number, so CBRS the to is XX%, And through that increase going only deployment.

as across WiFi auto amongst cooperation regional MNOs. the these authentication cable these well capabilities networks operators national to and as against WiFi compete as our But enable we

So increase. the Already, are continue very good margins can on the offload product. to our

economics. We product the don't to us as we for that force driving say no a at owner's need basis. there's stand-alone look so have to And

for our XXXX EBITDA We do rate. a to way, to which capital really more significant have we growth just markets perspective in the year that and from growth this get capability it's contribution

it's a combined But really product.

seamless connectivity us, For our broadband extension an is capabilities. mobile ties into It product.

our want we don't pressure XX% know have -- like the comment perspective no additional owner's to already need you there's feel so And beyond on... economics from to to I if we owner's have today. that

Jessica Fischer

Yes.

On going so the a on. piece, rural couple things there of are

a think the you there's preponderance if our a off, amount about where First of and rural business, large Carolinas in in Florida.

impact of perspective, also sometimes think late I the a QX. timing so hurricanes from have in from And do there placed a sales so from perspective, get one, in was the they second a there inside passings you quarter. service I think of bit the very

a in aged some quite much so assume things rate. And think they're of have sort as past those you not as you of if might would that coming at steady

penetrate on, than speed side. wired the on from rural still broadband some think markets some to last -- seen I with high. of of what that, a in little a we the cellphone we Internet we there's penetration beginning very which terminate in at less the those those terminal of is very bit as jump the markets is for one But don't in And previously. those the spaces those end early that quite where passings up we of had because there's a little competition sort person changes desire

Stefan Anninger

back that know. Right you. good And our concludes Leila, call. to that's to

Operator

session now Thank joining you and you call is the all concluded, The for disconnect. today. may now

Charter Communications (CHTR) 31 Jan 252024 Q4 Earnings call transcript