000109166700012718330001271834falsefalsefalse0001091667chtr:CCOHoldingsCapitalCorp.Member2024-11-012024-11-010001091667chtr:CCOHoldingsLLCMember2024-11-012024-11-0100010916672024-11-012024-11-01

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________
FORM 8-K
______________

Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 1, 2024

Charter_Communications_Logo_R_RGB.jpg

Charter Communications, Inc.
CCO Holdings, LLC
CCO Holdings Capital Corp.
(Exact name of registrant as specified in its charter)

Delaware
(State or other jurisdiction of incorporation or organization)
001-3366484-1496755
001-3778986-1067239
333-112593-0120-0257904
(Commission File Number)(I.R.S. Employer Identification Number)

400 Washington Blvd.
Stamford, Connecticut 06902
(Address of principal executive offices including zip code)

(203) 905-7801
(Registrant’s telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $.001 Par ValueCHTRNASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On November 1, 2024, Charter Communications, Inc. issued a press release announcing its results for the third quarter ended September 30, 2024. The following information, including the entirety of the press release appearing in Exhibit 99.1 hereto, is not filed but is furnished pursuant to item 2.02, "Results of Operations and Financial Condition."

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
Exhibit Description
   
99.1*
104The cover page from this Current Report on Form 8-K, formatted in Inline XBRL
* furnished herewith



Cautionary Statement Regarding Forward-Looking Statements

This current report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions, including, without limitation, the factors described under "Risk Factors" from time to time in our filings with the Securities and Exchange Commission ("SEC"). Many of the forward-looking statements contained in this current report may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity," “tentative,” "positioning," "designed," "create," "predict," "project," "initiatives," "seek," "would," "could," "continue," "ongoing," "upside," "increases," "grow," "focused on" and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this current report are set forth in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:

•our ability to sustain and grow revenues and cash flow from operations by offering Internet, video, voice, mobile, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures;
•the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite ("DBS") operators, wireless broadband and telephone providers, digital subscriber line (“DSL”) providers, fiber to the home providers and providers of video content over broadband Internet connections;
•general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn;
•our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents and distribution requirements);
•our ability to develop and deploy new products and technologies including consumer services and service platforms;
•any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation;
•the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us;
•the ability to hire and retain key personnel;
•our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives;
•the availability and access, in general, of funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets; and
•our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions.

All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this current report.



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, each of Charter Communications, Inc., CCO Holdings, LLC and CCO Holdings Capital Corp. has duly caused this Current Report to be signed on its behalf by the undersigned hereunto duly authorized.
CHARTER COMMUNICATIONS, INC.
Registrant
By:/s/ Kevin D. Howard
Kevin D. Howard
Date: November 1, 2024Executive Vice President, Chief Accounting Officer and Controller
CCO Holdings, LLC
Registrant
By:/s/ Kevin D. Howard
Kevin D. Howard
Date: November 1, 2024Executive Vice President, Chief Accounting Officer and Controller
CCO Holdings Capital Corp.
Registrant
By:/s/ Kevin D. Howard
Kevin D. Howard
Date: November 1, 2024Executive Vice President, Chief Accounting Officer and Controller



charter_communicationsxloga.jpg

Charter Announces Third Quarter 2024 Results

Stamford, Connecticut - November 1, 2024 - Charter Communications, Inc. (along with its subsidiaries, the “Company” or “Charter”), which operates the Spectrum brand, today reported financial and operating results for the three and nine months ended September 30, 2024.

•Third quarter total Internet customers decreased by 110,000. As of September 30, 2024, Charter served 30.3 million Internet customers.

•Third quarter total mobile lines increased by 545,000. As of September 30, 2024, Charter served 9.4 million mobile lines.

•As of September 30, 2024, Charter had a total of 31.7 million customer relationships, excluding mobile-only relationships.

•Third quarter revenue of $13.8 billion grew by 1.6% year-over-year, driven by residential mobile service revenue growth of 37.6% and residential Internet revenue growth of 1.7%.

•Net income attributable to Charter shareholders totaled $1.3 billion in the third quarter.

•Third quarter Adjusted EBITDA1 of $5.6 billion grew by 3.6% year-over-year.

•Third quarter capital expenditures totaled $2.6 billion and included $1.1 billion of line extensions.

•Third quarter net cash flows from operating activities totaled $3.9 billion, in-line with the prior year period.

•Third quarter free cash flow1 of $1.6 billion increased from $1.1 billion in the prior year, primarily driven by lower capital expenditures and higher Adjusted EBITDA.

•During the third quarter, Charter purchased 844 thousand shares of Charter Class A common stock and Charter Communications Holdings, LLC ("Charter Holdings") common units for $262 million.

"We executed well during the third quarter, building on our operating strategy and foundational investments," said Chris Winfrey, President and CEO of Charter. "Now and in the future, we have the best, fully deployed network uniquely capable of delivering seamless connectivity and entertainment, everywhere we operate. We have pricing and packaging that saves customers money with the best products, and a service capability and investment that has yet to be fully realized as a competitive advantage."







1.Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.
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Key Operating Results
Approximate as of
September 30, 2024 (c)
September 30, 2023 (c)
Y/Y Change
Footprint
Estimated Passings (d)58,206 56,582 2.9 %
Customer Relationships (e)
Residential29,465 30,012 (1.8)%
Small and Medium Business ("SMB")2,223 2,224 — %
Total Customer Relationships31,688 32,236 (1.7)%
Residential(150)3 (153)
SMB1 5 (4)
Total Customer Relationships Quarterly Net Additions(149)8 (157)
Total Customer Relationship Penetration of Estimated Passings (f)54.4 %57.0 %(2.6) ppts
Monthly Residential Revenue per Residential Customer (g)$121.47 $119.28 1.8 %
Monthly SMB Revenue per SMB Customer (h)$164.38 $162.94 0.9 %
Residential Customer Relationships Penetration
One Product Penetration (i)47.9 %46.5 %1.4 ppts
Two Product Penetration (i)33.4 %33.0 %0.4 ppts
Three or More Product Penetration (i)18.7 %20.5 %(1.8) ppts
% Residential Non-Video Customer Relationships57.8 %54.2 %3.6 ppts
Internet
Residential28,205 28,606 (1.4)%
SMB2,052 2,043 0.4 %
Total Internet Customers30,257 30,649 (1.3)%
Residential(113)57 (170)
SMB3 6 (3)
Total Internet Quarterly Net Additions(110)63 (173)
Video
Residential12,437 13,751 (9.6)%
SMB578 628 (8.0)%
Total Video Customers13,015 14,379 (9.5)%
Residential(281)(320)39 
SMB(13)(7)(6)
Total Video Quarterly Net Additions(294)(327)33 
Voice
Residential5,895 6,960 (15.3)%
SMB1,263 1,296 (2.5)%
Total Voice Customers7,158 8,256 (13.3)%
Residential(275)(288)13 
SMB(13)2 (15)
Total Voice Quarterly Net Additions(288)(286)(2)
Mobile Lines (j)
Residential9,057 6,987 29.6 %
SMB297 233 27.4 %
Total Mobile Lines9,354 7,220 29.6 %
Residential526 577 (51)
SMB19 17 2 
Total Mobile Lines Quarterly Net Additions545 594 (49)
Enterprise (k)
Enterprise Primary Service Units ("PSUs")315 298 5.7 %
Enterprise Quarterly Net Additions3 4 (1)
In thousands, except per customer and penetration data. See footnotes to unaudited summary of operating statistics on page 7 of the addendum of this news release. The footnotes contain important disclosures regarding the definitions used for these operating statistics. All percentages are calculated using whole numbers. Minor differences may exist due to rounding.
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In September, Spectrum launched a new brand platform, Life Unlimited, which emphasizes the power of Spectrum’s advanced network and cutting-edge connectivity products and services to create opportunities and remove barriers to help customers live their best lives. As part of its new brand platform, Spectrum launched a new and simplified pricing strategy that better utilizes its seamless connectivity and entertainment products to offer lower promotional and persistent bundled pricing to drive growth. Additionally, Spectrum announced new customer commitments focused on reliable connectivity, transparency, exceptional service and a focus on always improving.

Third quarter total Internet customers decreased by 110,000, driven by the end of the FCC's Affordable Connectivity Program ("ACP") in the second quarter, compared to an increase of 63,000 during the third quarter of 2023. Spectrum Internet® delivers the fastest Internet speeds1 in the nation. Spectrum is evolving its connectivity network to offer symmetrical and multi-gigabit Internet speeds across its entire footprint and has launched symmetrical Internet service in eight markets. Unlike competitors, Spectrum upgrades its network for all households and can do so at a much lower cost. Spectrum Advanced WiFi, a managed WiFi service that provides customers an optimized home network while providing greater control of connected devices with enhanced security and privacy is available to all Spectrum Internet customers.

Total video customers decreased by 294,000 in the third quarter of 2024, compared to a decline of 327,000 in the third quarter of 2023. As of September 30, 2024, Charter had 13.0 million total video customers. Spectrum TV Select video customers will soon receive up to $80 per month of programmers' streaming application retail value at no extra cost, including the ad-supported versions of Max, Disney+, Peacock, Paramount+, ESPN+, AMC+, Discovery+, BET+, ViX, and Tennis Channel Plus. This programmer streaming application inclusion is part of Charter's broader video evolution strategy to provide flexible packages with enhanced value, whether through full packages with seamless entertainment, smaller video packages, or a suite of a-la-carte programmer application options for broadband-only customers.

During the third quarter of 2024, total wireline voice customers declined by 288,000, compared to a decline of 286,000 in the third quarter of 2023. As of September 30, 2024, Charter had 7.2 million total wireline voice customers.

During the third quarter of 2024, Charter added 545,000 total mobile lines, compared to growth of 594,000 during the third quarter of 2023. Spectrum MobileTM is available to all new and existing Spectrum Internet customers and offers the fastest overall speeds,2 with plans that include 5G access, do not require contracts and include taxes and fees in the price. Spectrum Mobile is central to Charter's converged network strategy to provide consumers a differentiated connectivity experience with highly competitive, simple data plans and pricing.

Charter continues to work with federal, state and local governments to bring Spectrum Internet to unserved and underserved communities. During the third quarter of 2024, Charter activated 114,000 subsidized rural passings. Within Charter's subsidized rural footprint, total customer relationships increased by 41,000 in the third quarter of 2024.









1.Based on Broadband Download Speed nationally in Opensignal USA: Fixed Broadband Experience Report – National View, May 2024. Based on Opensignal independent analysis of mean download speed. © 2024 Opensignal Limited.
2.Based on Charter’s analysis of Ookla® Speedtest Intelligence® data for overall mobile WiFi and Cellular performance for 1Q24 in Charter’s footprint.
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Third Quarter Financial Results
(in millions)
Three Months Ended September 30,
20242023% Change
Revenues:
Internet$5,872 $5,776 1.7 %
Video3,735 4,004 (6.7)%
Voice360 379 (5.0)%
Mobile service 801 581 37.6 %
Residential revenue10,768 10,740 0.3 %
Small and medium business1,096 1,085 1.0 %
Enterprise723 698 3.7 %
Commercial revenue1,819 1,783 2.0 %
Advertising sales452 384 18.1 %
Other756 677 11.6 %
Total Revenues$13,795 $13,584 1.6 %
Net income attributable to Charter shareholders$1,280 $1,255 2.0 %
Net income attributable to Charter shareholders margin9.3 %9.2 %
Adjusted EBITDA1
$5,647 $5,449 3.6 %
Adjusted EBITDA margin40.9 %40.1 %
Capital Expenditures$2,563 $2,961 (13.5)%
Net cash flows from operating activities$3,905 $3,944 (1.0)%
Free cash flow1
$1,619 $1,097 47.6 %

All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

1.Adjusted EBITDA and free cash flow are non-GAAP measures defined in the “Use of Adjusted EBITDA and Free Cash Flow Information” section and are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the addendum of this news release.

Revenues

Third quarter revenue increased by 1.6% year-over-year to $13.8 billion, driven by growth in residential mobile service, residential Internet, advertising and other revenues, partly offset by lower residential video revenue. Year-over-year revenue growth was favorably impacted by $68 million of total customer credits in the prior year period related to the temporary loss of Disney programming in September 2023.

Residential revenue totaled $10.8 billion in the third quarter, an increase of 0.3% year-over-year. Year-over-year revenue growth was favorably impacted by $63 million of residential customer credits in the prior year period related to the temporary loss of Disney programming in September 2023.

Third quarter 2024 monthly residential revenue per residential customer totaled $121.47, and increased by 1.8% compared to the prior year period. The growth was driven by promotional rate step-ups, rate adjustments, the growth of Spectrum Mobile and $63 million of residential customer credits in the prior year period related to the temporary loss of Disney programming in September 2023, partly offset by a lower mix of video customer relationships and a higher mix of lower priced video packages within Charter's video customer base.

Internet revenue grew by 1.7% year-over-year to $5.9 billion, driven by promotional rate step-ups and rate adjustments, partly offset by lower bundled revenue allocation and a decline in Internet customers during the last year.

4

Video revenue totaled $3.7 billion in the third quarter, a decrease of 6.7% compared to the prior year period, driven by a decline in video customers during the last year and a higher mix of lower priced video packages within Charter's video customer base, partly offset by promotional rate step-ups, video rate adjustments that pass through programmer rate increases and the aforementioned $63 million of residential customer credits recorded in September 2023.

Voice revenue decreased by 5.0% year-over-year to $360 million, driven by a decline in wireline voice customers over the last twelve months, partly offset by voice rate adjustments.

Third quarter mobile service revenue totaled $801 million, an increase of 37.6% year-over-year, driven by mobile line growth and higher bundled revenue allocation.

Commercial revenue increased by 2.0% year-over-year to $1.8 billion, driven by enterprise and SMB revenue growth of 3.7% and 1.0% year-over-year, respectively. The year-over-year increase in third quarter 2024 SMB revenue was driven by higher monthly SMB revenue per SMB customer, primarily due to rate adjustments. Enterprise revenue excluding wholesale increased by 5.9% year-over-year, mostly reflecting PSU growth.

Third quarter advertising sales revenue of $452 million increased by 18.1% compared to the year-ago quarter, primarily driven by higher political revenue. Excluding political revenue in both periods, advertising sales revenue decreased by 6.3% year-over-year due to a more challenged advertising market, partly offset by higher advanced advertising revenue.

Other revenue totaled $756 million in the third quarter, an increase of 11.6% compared to the third quarter of 2023, primarily driven by higher mobile device sales.

Operating Costs and Expenses

Third quarter programming costs decreased by $259 million, or 10.0% as compared to the third quarter of 2023, reflecting fewer video customers and a higher mix of lower cost packages within Charter's video customer base, partly offset by contractual programming rate increases and renewals and a $61 million benefit in the prior year period related to the temporary loss of Disney programming in September 2023.

Other costs of revenue increased by $219 million, or 15.8% year-over-year, primarily driven by higher mobile device sales and mobile service direct costs.

Costs to service customers decreased by $12 million, or 0.5% year-over-year, primarily due to lower labor costs.

Sales and marketing expenses increased by $40 million, or 4.4% year-over-year, given Spectrum's continued focus on driving growth and the launch of its new brand platform, Life Unlimited.

Other expenses increased by $25 million, or 2.3% as compared to the third quarter of 2023.

Net Income Attributable to Charter Shareholders

Net income attributable to Charter shareholders totaled $1.3 billion in the third quarter of 2024, compared to $1.3 billion in the third quarter of 2023, with higher Adjusted EBITDA mostly offset by higher other expenses, net primarily due to non-cash changes in the value of financial instruments.

Net income per basic common share attributable to Charter shareholders totaled $8.99 in the third quarter of 2024 compared to $8.42 during the same period last year. The increase was primarily the result
5

of the factors described above in addition to a 4.5% decrease in basic weighted average common shares outstanding versus the prior year period.

Adjusted EBITDA

Third quarter Adjusted EBITDA of $5.6 billion grew by 3.6% year-over-year, reflecting growth in revenue and operating expenses of 1.6% and 0.2%, respectively.

Capital Expenditures

Capital expenditures totaled $2.6 billion in the third quarter of 2024, a decrease of $398 million compared to the third quarter of 2023, driven by lower spend on CPE and upgrade/rebuild (primarily network evolution). Line extensions capital expenditures totaled $1.1 billion in the third quarter of 2024, driven by Charter's subsidized rural construction initiative and continued network expansion across residential and commercial greenfield and market fill-in opportunities.

Charter now expects full year 2024 capital expenditures to total approximately $11.5 billion, a decrease from Charter's previous expectation of approximately $12.0 billion. The decrease primarily reflects lower expected network evolution and line extension spend in 2024, partly offset by higher expected rebuild spend related to plant restoration following recent hurricanes. Charter now expects full year 2024 network evolution spend of approximately $1.1 billion versus prior expectations of approximately $1.6 billion, due to the timing of software certification and integration. Charter now expects full year 2024 line extensions spend of approximately $4.3 billion versus $4.5 billion previously, reflecting a temporary shift in labor resources for plant restoration efforts following hurricanes Helene and Milton. The actual amount of capital expenditures in 2024 will depend on a number of factors including, but not limited to, the pace of Charter's network evolution and expansion initiatives, supply chain timing and growth rates in Charter's residential and commercial businesses.

Cash Flow and Free Cash Flow

During the third quarter of 2024, net cash flows from operating activities totaled $3.9 billion, in-line with the prior year quarter, with higher Adjusted EBITDA offset by higher cash taxes.

Free cash flow in the third quarter of 2024 totaled $1.6 billion, an increase of $522 million compared to the third quarter of 2023. The year-over-year increase in free cash flow was primarily driven by lower capital expenditures and a more favorable change in accrued expenses related to capital expenditures.

Liquidity & Financing

As of September 30, 2024, total principal amount of debt was $95.1 billion and Charter's credit facilities provided approximately $5.5 billion of additional liquidity in excess of Charter's $721 million cash position.

Share Repurchases

During the three months ended September 30, 2024, Charter purchased 844 thousand shares of Charter Class A common stock and Charter Holdings common units for $262 million.
6

Webcast

Charter will host a webcast on Friday, November 1, 2024 at 8:30 a.m. Eastern Time (ET) related to the contents of this release.

The webcast can be accessed live via the Company's investor relations website at ir.charter.com. Participants should go to the webcast link no later than 10 minutes prior to the start time to register. The webcast will be archived at ir.charter.com two hours after completion of the webcast.

Additional Information Available on Website

The information in this press release should be read in conjunction with the financial statements and footnotes contained in the Company's Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2024, which will be posted on the “Results & SEC Filings” section of the Company's investor relations website at ir.charter.com, when it is filed with the Securities and Exchange Commission (the "SEC"). A slide presentation to accompany the conference call and a trending schedule containing historical customer and financial data will also be available in the “Results & SEC Filings” section.

Use of Adjusted EBITDA and Free Cash Flow Information

The Company uses certain measures that are not defined by U.S. generally accepted accounting principles ("GAAP") to evaluate various aspects of its business. Adjusted EBITDA and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net income attributable to Charter shareholders and net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies. Adjusted EBITDA and free cash flow are reconciled to net income attributable to Charter shareholders and net cash flows from operating activities, respectively, in the Addendum to this release.

Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other income (expenses), net and other operating (income) expenses, net, such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company's businesses as well as other non-cash or special items, and is unaffected by the Company's capital structure or investment activities. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing. These costs are evaluated through other financial measures.  

Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.  

Management and Charter's board of directors use Adjusted EBITDA and free cash flow to assess Charter's performance and its ability to service its debt, fund operations and make additional investments with internally generated funds. In addition, Adjusted EBITDA generally correlates to the leverage ratio calculation under the Company's credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the SEC). For the purpose of calculating compliance with leverage covenants, the Company uses Adjusted EBITDA, as presented, excluding certain expenses paid by its operating subsidiaries to other Charter entities. The Company's debt covenants refer to these expenses as management fees, which were $373 million and $345 million for the three months ended September 30, 2024 and 2023, respectively, and $1.1 billion and $1.1 billion for the nine months ended September 30, 2024 and 2023, respectively.

7

About Charter

Charter Communications, Inc. (NASDAQ:CHTR) is a leading broadband connectivity company and cable operator with services available to more than 58 million homes and businesses in 41 states through its Spectrum brand. Over an advanced communications network, the Company offers a full range of state-of-the-art residential and business services including Spectrum Internet®, TV, Mobile and Voice.

For small and medium-sized companies, Spectrum Business® delivers the same suite of broadband products and services coupled with special features and applications to enhance productivity, while for larger businesses and government entities, Spectrum Enterprise® provides highly customized, fiber-based solutions. Spectrum Reach® delivers tailored advertising and production for the modern media landscape. The Company also distributes award-winning news coverage and sports programming to its customers through Spectrum Networks. More information about Charter can be found at corporate.charter.com.


# # #

Contact:
Media:
Analysts:
Justin VenechStefan Anninger
203-905-7818203-905-7955

8

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations as reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under “Risk Factors” from time to time in our filings with the SEC. Many of the forward-looking statements contained in this communication may be identified by the use of forward-looking words such as “believe,” “expect,” “anticipate,” “should,” “planned,” “will,” “may,” “intend,” “estimated,” “aim,” “on track,” “target,” “opportunity,” “tentative,” “positioning,” “designed,” “create,” “predict,” “project,” "initiatives," “seek,” “would,” “could,” “continue,” “ongoing,” “upside,” “increases,” "grow," "focused on" and “potential,” among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this communication are set forth in our annual report on Form 10-K, and in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:

•our ability to sustain and grow revenues and cash flow from operations by offering Internet, video, voice, mobile, advertising and other services to residential and commercial customers, to adequately meet the customer experience demands in our service areas and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition, the need for innovation and the related capital expenditures;
•the impact of competition from other market participants, including but not limited to incumbent telephone companies, direct broadcast satellite ("DBS") operators, wireless broadband and telephone providers, digital subscriber line (“DSL”) providers, fiber to the home providers and providers of video content over broadband Internet connections;
•general business conditions, unemployment levels and the level of activity in the housing sector and economic uncertainty or downturn;
•our ability to obtain programming at reasonable prices or to raise prices to offset, in whole or in part, the effects of higher programming costs (including retransmission consents and distribution requirements);
•our ability to develop and deploy new products and technologies including consumer services and service platforms;
•any events that disrupt our networks, information systems or properties and impair our operating activities or our reputation;
•the effects of governmental regulation on our business including subsidies to consumers, subsidies and incentives for competitors, costs, disruptions and possible limitations on operating flexibility related to, and our ability to comply with, regulatory conditions applicable to us;
•the ability to hire and retain key personnel;
•our ability to procure necessary services and equipment from our vendors in a timely manner and at reasonable costs including in connection with our network evolution and rural construction initiatives;
•the availability and access, in general, of funds to meet our debt obligations prior to or when they become due and to fund our operations and necessary capital expenditures, either through (i) cash on hand, (ii) free cash flow, or (iii) access to the capital or credit markets; and
•our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions.

All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this communication.
9

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(dollars in millions)

Three Months Ended September 30,Nine Months Ended September 30,Last Twelve Months Ended September 30,
202420232024202320242023
Net income attributable to Charter shareholders$1,280 $1,255 $3,617 $3,499 $4,675 $4,695 
Plus: Net income attributable to noncontrolling interest194 181 560 533 731 722 
Interest expense, net1,311 1,306 3,955 3,869 5,274 5,096 
Income tax expense406 369 1,279 1,187 1,685 1,606 
Depreciation and amortization2,145 2,130 6,505 6,508 8,693 8,700 
Stock compensation expense146 164 513 540 665 650 
Other, net165 44 380 185 659 334 
Adjusted EBITDA (a)
$5,647 $5,449 $16,809 $16,321 $22,382 $21,803 
Net cash flows from operating activities$3,905 $3,944 $10,970 $10,578 $14,825 $14,365 
Less: Purchases of property, plant and equipment(2,563)(2,961)(8,207)(8,259)(11,063)(11,179)
Change in accrued expenses related to capital expenditures277 114 510 110 572 379 
Free cash flow (a)
$1,619 $1,097 $3,273 $2,429 $4,334 $3,565 

The above schedule is presented in order to reconcile Adjusted EBITDA and free cash flow, non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act.


UNAUDITED ALTERNATIVE PRESENTATION OF ADJUSTED EBITDA
(dollars in millions)

Three Months Ended September 30,Nine Months Ended September 30,
20242023% Change20242023% Change
REVENUES:
Internet$5,872 $5,776 1.7 %$17,504 $17,227 1.6 %
Video3,735 4,004 (6.7)%11,510 12,446 (7.5)%
Voice360 379 (5.0)%1,084 1,117 (3.0)%
Mobile service801 581 37.6 %2,223 1,617 37.5 %
Residential revenue10,768 10,740 0.3 %32,321 32,407 (0.3)%
Small and medium business1,096 1,085 1.0 %3,285 3,270 0.4 %
Enterprise723 698 3.7 %2,152 2,070 4.0 %
Commercial revenue1,819 1,783 2.0 %5,437 5,340 1.8 %
Advertising sales452 384 18.1 %1,240 1,123 10.5 %
Other756 677 11.6 %2,161 2,026 6.6 %
Total Revenues13,795 13,584 1.6 %41,159 40,896 0.6 %
COSTS AND EXPENSES:
Programming2,336 2,595 (10.0)%7,378 8,134 (9.3)%
Other costs of revenue1,604 1,385 15.8 %4,600 4,080 12.8 %
Costs to service customers 2,130 2,142 (0.5)%6,205 6,306 (1.6)%
Sales and marketing952 912 4.4 %2,784 2,753 1.1 %
Other expense (b)
1,126 1,101 2.3 %3,383 3,302 2.4 %
Total operating costs and expenses (b)
8,148 8,135 0.2 %24,350 24,575 (0.9)%
Adjusted EBITDA (a)
$5,647 $5,449 3.6 %$16,809 $16,321 3.0 %

All percentages are calculated using whole numbers. Minor differences may exist due to rounding.

See footnotes on page 7.
Addendum to Charter Communications, Inc. Third Quarter 2024 Earnings Release
Page 1 of 7


CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in millions, except per share data)

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
REVENUES$13,795 $13,584 $41,159 $40,896 
COSTS AND EXPENSES:
Operating costs and expenses (exclusive of items shown separately below)8,294 8,299 24,863 25,115 
Depreciation and amortization2,145 2,130 6,505 6,508 
Other operating (income) expenses, net21 29 62 (19)
10,460 10,458 31,430 31,604 
Income from operations3,335 3,126 9,729 9,292 
OTHER INCOME (EXPENSES):
Interest expense, net(1,311)(1,306)(3,955)(3,869)
Other expenses, net(144)(15)(318)(204)
(1,455)(1,321)(4,273)(4,073)
Income before income taxes1,880 1,805 5,456 5,219 
Income tax expense(406)(369)(1,279)(1,187)
Consolidated net income 1,474 1,436 4,177 4,032 
Less: Net income attributable to noncontrolling interests
(194)(181)(560)(533)
Net income attributable to Charter shareholders$1,280 $1,255 $3,617 $3,499 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO CHARTER SHAREHOLDERS:
Basic$8.99 $8.42 $25.23 $23.30 
Diluted$8.82 $8.25 $24.86 $22.94 
Weighted average common shares outstanding, basic
142,308,740 149,004,322 143,379,041 150,169,275 
Weighted average common shares outstanding, diluted
145,059,470 152,019,159 145,489,370 152,495,273 






Addendum to Charter Communications, Inc. Third Quarter 2024 Earnings Release
Page 2 of 7


CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in millions)

September 30,December 31,
20242023
ASSETS(unaudited)
CURRENT ASSETS:
Cash and cash equivalents$721 $709 
Accounts receivable, net3,067 2,965 
Prepaid expenses and other current assets704 458 
Total current assets4,492 4,132 
INVESTMENT IN CABLE PROPERTIES:
Property, plant and equipment, net41,846 39,520 
Customer relationships, net1,148 1,745 
Franchises67,455 67,396 
Goodwill29,668 29,668 
Total investment in cable properties, net140,117 138,329 
OTHER NONCURRENT ASSETS4,762 4,732 
Total assets$149,371 $147,193 
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, accrued and other current liabilities$11,362 $11,214 
Current portion of long-term debt1,798 2,000 
Total current liabilities13,160 13,214 
LONG-TERM DEBT93,517 95,777 
EQUIPMENT INSTALLMENT PLAN FINANCING FACILITY998 — 
DEFERRED INCOME TAXES18,983 18,954 
OTHER LONG-TERM LIABILITIES4,659 4,530 
SHAREHOLDERS' EQUITY:
Controlling interest14,099 11,086 
Noncontrolling interests3,955 3,632 
Total shareholders' equity 18,054 14,718 
Total liabilities and shareholders' equity$149,371 $147,193 

Addendum to Charter Communications, Inc. Third Quarter 2024 Earnings Release
Page 3 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in millions)

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income $1,474 $1,436 $4,177 $4,032 
Adjustments to reconcile consolidated net income to net cash flows from operating activities:
Depreciation and amortization2,145 2,130 6,505 6,508 
Stock compensation expense146 164 513 540 
Noncash interest, net9 9 25 13 
Deferred income taxes61 17 48 (46)
Other, net159 25 264 212 
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:
Accounts receivable(66)(68)(99)(11)
Prepaid expenses and other assets(272)(173)(537)(534)
Accounts payable, accrued liabilities and other249 404 74 (136)
Net cash flows from operating activities3,905 3,944 10,970 10,578 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment(2,563)(2,961)(8,207)(8,259)
Change in accrued expenses related to capital expenditures277 114 510 110 
Other, net(153)(47)(378)(334)
Net cash flows from investing activities(2,439)(2,894)(8,075)(8,483)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt2,645 3,543 17,388 14,591 
Borrowings of equipment installment plan financing facility124 — 1,000 — 
Repayments of long-term debt(4,115)(3,650)(19,899)(14,385)
Payments for debt issuance costs— — (27)(18)
Purchase of treasury stock(222)(783)(1,099)(2,021)
Proceeds from exercise of stock options 27 16 29 21 
Purchase of noncontrolling interest(44)(78)(185)(254)
Distributions to noncontrolling interest(44)(35)(108)(118)
Other, net271 30 47 15 
Net cash flows from financing activities(1,358)(957)(2,854)(2,169)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH108 93 41 (74)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period642 478 709 645 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period$750 $571 $750 $571 
CASH PAID FOR INTEREST$1,214 $1,234 $3,812 $3,666 
CASH PAID FOR TAXES$473 $243 $1,120 $1,149 

As of September 30, 2024, cash, cash equivalents and restricted cash includes $29 million of restricted cash included in prepaid expenses and other current assets in the consolidated balance sheets.
Addendum to Charter Communications, Inc. Third Quarter 2024 Earnings Release
Page 4 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED SUMMARY OF OPERATING STATISTICS
(in thousands, except per customer and penetration data)

Approximate as of
September 30, 2024(c)
June 30, 2024(c)
December 31, 2023 (c)
September 30, 2023(c)
Footprint
Estimated Passings (d)
58,206 57,774 56,986 56,582 
Customer Relationships (e)
Residential 29,465 29,615 29,904 30,012 
SMB2,223 2,222 2,222 2,224 
Total Customer Relationships 31,688 31,837 32,126 32,236 
Residential (150)(182)(108)3 
SMB1 3 (2)5 
Total Customer Relationships Quarterly Net Additions(149)(179)(110)8 
Total Customer Relationship Penetration of Estimated Passings (f)
54.4 %55.1 %56.4 %57.0 %
Monthly Residential Revenue per Residential Customer (g)
$121.47 $120.77 $119.41 $119.28 
Monthly SMB Revenue per SMB Customer (h)
$164.38 $165.28 $162.38 $162.94 
Residential Customer Relationships Penetration
One Product Penetration (i)
47.9 %47.7 %46.7 %46.5 %
Two Product Penetration (i)
33.4 %33.2 %33.1 %33.0 %
Three or More Product Penetration (i)
18.7 %19.2 %20.2 %20.5 %
% Residential Non-Video Customer Relationships57.8 %57.1 %54.8 %54.2 %
Internet
Residential28,205 28,318 28,544 28,606 
SMB2,052 2,049 2,044 2,043 
Total Internet Customers30,257 30,367 30,588 30,649 
Residential(113)(154)(62)57 
SMB3 5 1 6 
Total Internet Quarterly Net Additions(110)(149)(61)63 
Video
Residential12,437 12,718 13,503 13,751 
SMB578 591 619 628 
Total Video Customers13,015 13,309 14,122 14,379 
Residential(281)(393)(248)(320)
SMB(13)(15)(9)(7)
Total Video Quarterly Net Additions(294)(408)(257)(327)
Voice
Residential5,895 6,170 6,712 6,960 
SMB1,263 1,276 1,293 1,296 
Total Voice Customers7,158 7,446 8,005 8,256 
Residential(275)(268)(248)(288)
SMB(13)(12)(3)2 
Total Voice Quarterly Net Additions(288)(280)(251)(286)
Mobile Lines (j)
Residential9,057 8,531 7,519 6,987 
SMB297 278 247 233 
Total Mobile Lines9,354 8,809 7,766 7,220 
Residential526 539 532 577 
SMB19 18 14 17 
Total Mobile Lines Quarterly Net Additions545 557 546 594 
Enterprise (k)
Enterprise Primary Service Units ("PSUs")315 312 303 298 
Enterprise Quarterly Net Additions3 4 5 4 

See footnotes on page 7.
Addendum to Charter Communications, Inc. Third Quarter 2024 Earnings Release
Page 5 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CAPITAL EXPENDITURES
(dollars in millions)

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Customer premise equipment (l)
$400 $659 $1,597 $1,772 
Scalable infrastructure (m)
321 308 1,011 1,015 
Upgrade/rebuild (n)
358 509 1,228 1,190 
Support capital (o)
403 420 1,212 1,245 
Capital expenditures, excluding line extensions1,482 1,896 5,048 5,222 
Subsidized rural construction line extensions577 498 1,569 1,398 
Other line extensions504 567 1,590 1,639 
Total line extensions (p)
1,081 1,065 3,159 3,037 
Total capital expenditures$2,563 $2,961 $8,207 $8,259 
Capital expenditures included in total related to:
Commercial services$346 $403 $1,103 $1,179 
Subsidized rural construction initiative (q)
$581 $512 $1,575 $1,444 
Mobile$58 $76 $181 $235 

See footnotes on page 7.

Addendum to Charter Communications, Inc. Third Quarter 2024 Earnings Release
Page 6 of 7

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
FOOTNOTES

(a)Adjusted EBITDA is defined as net income attributable to Charter shareholders plus net income attributable to noncontrolling interest, net interest expense, income taxes, depreciation and amortization, stock compensation expense, other (income) expenses, net and other operating (income) expenses, net such as special charges and (gain) loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of our businesses as well as other non-cash or special items, and is unaffected by our capital structure or investment activities. Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.
(b)Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net.
(c)We calculate the aging of customer accounts based on the monthly billing cycle for each account in accordance with our collection policies. On that basis, at September 30, 2024, June 30, 2024, December 31, 2023 and September 30, 3023, customers included approximately 127,300, 79,400, 135,800 and 143,300 customers, respectively, whose accounts were over 60 days past due, approximately 11,900, 10,000, 54,700 and 53,400 customers, respectively, whose accounts were over 90 days past due and approximately 11,800, 13,500, 286,000 and 261,700 customers, respectively, whose accounts were over 120 days past due. The decrease in accounts past due is predominately due to revisions to customer account balances associated with the end of the Affordable Connectivity Program, including balance write-offs and conversion to payment plans. Bad debt expense associated with these past due accounts was predominantly reflected in our consolidated statements of operations in prior periods.
(d)Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and SMB and enterprise sites passed by our cable distribution network in the areas where we offer the service indicated. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.
(e)Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video, voice and mobile services, without regard to which service(s) such customers receive. Customers who reside in residential multiple dwelling units ("MDUs") and that are billed under bulk contracts are counted based on the number of billed units within each bulk MDU. Total customer relationships exclude enterprise and mobile-only customer relationships.
(f)Penetration represents residential and SMB customers as a percentage of estimated passings. Penetration excludes mobile-only customers.
(g)Monthly residential revenue per residential customer is calculated as total residential quarterly revenue divided by three divided by average residential customer relationships during the respective quarter and excludes mobile-only customer relationships.
(h)Monthly SMB revenue per SMB customer is calculated as total SMB quarterly revenue divided by three divided by average SMB customer relationships during the respective quarter and excludes mobile-only customer relationships.
(i)One product, two product and three or more product penetration represents the number of residential customers that subscribe to one product, two products or three or more products, respectively, as a percentage of residential customer relationships, excluding mobile-only customers.
(j)Mobile lines include phones and tablets which require one of our standard rate plans (e.g., "Unlimited" or "By the Gig"). Mobile lines exclude wearables and other devices that do not require standard phone rate plans.
(k)Enterprise PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
(l)Customer premise equipment includes equipment and devices located at the customer's premise used to deliver our Internet, video and voice services (e.g., modems, routers and set-top boxes), as well as installation costs.
(m)Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers or provide service enhancements (e.g., headend equipment).
(n)Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including our network evolution initiative.
(o)Support capital includes costs associated with the replacement or enhancement of non-network assets (e.g., back-office systems, non-network equipment, land and buildings, vehicles, tools and test equipment).
(p)Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).
(q)The subsidized rural construction initiative subcategory includes projects for which we are receiving subsidies from federal, state and local governments, excluding customer premise equipment and installation.

Addendum to Charter Communications, Inc. Third Quarter 2024 Earnings Release
Page 7 of 7
v3.24.3
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Nov. 01, 2024
Entity Information [Line Items]  
Document Type 8-K
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Document Period End Date Nov. 01, 2024
Entity Registrant Name Charter Communications, Inc.
Entity Central Index Key 0001091667
Entity Incorporation, State or Country Code DE
Entity File Number 001-33664
Entity Tax Identification Number 84-1496755
Entity Address, Address Line One 400 Washington Blvd.
Entity Address, City or Town Stamford
Entity Address, State or Province CT
Entity Address, Postal Zip Code 06902
City Area Code 203
Local Phone Number 905-7801
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Title of 12(b) Security Class A Common Stock, $.001 Par Value
Trading Symbol CHTR
Security Exchange Name NASDAQ
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