Charter Communications : 2Q21 Trending Schedule

Charter Communications, Inc. Customer Metrics

(in thousands except ARPU and penetration, unaudited)

						2019												2020								2021
		1Q		2Q		3Q			4Q		FY			1Q		2Q		3Q			4Q		FY			1Q		2Q
Footprint (a)
Estimated Passings		51,384		51,619		51,940			52,154		52,154			52,418		52,714		53,022			53,300		53,300			53,592		53,884
Customer Relationships (b)
Residential		26,591		26,755		27,037			27,277		27,277			27,745		28,496		28,912			29,079		29,079			29,361		29,660
Small and Medium Business ("SMB")		1,863		1,902		1,930			1,958		1,958			1,976		1,980		2,021			2,051		2,051			2,071		2,104
Total Customer Relationships		28,454		28,657		28,967			29,235		29,235			29,721		30,476		30,933			31,130		31,130			31,432		31,764
Residential		321		164		282			240		1,007			468		751		416			167		1,802			282		299
SMB		30		39		28			28		125			18		4		41			30		93			20		33
Total Customer Relationships Net Additions		351		203		310			268		1,132			486		755		457			197		1,895			302		332
Total Customer Relationship Penetration of Estimated Passings (c)		55.4%		55.5%		55.8%			56.1%		56.1%			56.7%		57.8%		58.3%			58.4%		58.4%			58.7%		58.9%
Monthly Residential Revenue per Residential Customer (d)	$	112.47	$	112.20	$	112.00	$	113.79	$	112.63	$	112.73	$	110.82	$	109.03	$	111.85	$	111.15	$	112.18	$	112.85
Monthly SMB Revenue per SMB Customer (e)	$	170.64	$	170.42	$	169.44	$	169.06	$	169.90	$	168.83	$	166.06	$	164.77	$	163.02	$	165.60	$	163.79	$	166.28
Residential Customer Relationships Penetration
Single Play Penetration (f)		42.1%		42.4%		42.7%			43.0%		43.0%			43.6%		44.0%		44.2%			44.5%		44.5%			45.2%		45.7%
Double Play Penetration (f)		27.9%		28.8%		29.9%			30.7%		30.7%			31.2%		31.7%		32.3%			32.7%		32.7%			32.6%		32.7%
Triple Play Penetration (f)		30.0%		28.8%		27.3%			26.2%		26.2%			25.2%		24.3%		23.5%			22.9%		22.9%			22.2%		21.6%
% Residential Non-Video Customer Relationships		40.0%		40.9%		41.8%			42.7%		42.7%			44.0%		45.1%		45.7%			46.2%		46.2%			47.3%		48.0%
Internet
Residential		24,023		24,244		24,595			24,908		24,908			25,471		26,313		26,807			27,023		27,023			27,357		27,722
SMB		1,664		1,701		1,730			1,756		1,756			1,775		1,783		1,826			1,856		1,856			1,877		1,912
Total Internet Customers		25,687		25,945		26,325			26,664		26,664			27,246		28,096		28,633			28,879		28,879			29,234		29,634
Residential		398		221		351			313		1,283			563		842		494			216		2,115			334		365
SMB		30		37		29			26		122			19		8		43			30		100			21		35
Total Internet Net Additions		428		258		380			339		1,405			582		850		537			246		2,215			355		400
Video
Residential		15,952		15,802		15,725			15,620		15,620			15,550		15,652		15,705			15,639		15,639			15,483		15,420
SMB		509		518		520			524		524			524		516		530			561		561			579		592
Total Video Customers		16,461		16,320		16,245			16,144		16,144			16,074		16,168		16,235			16,200		16,200			16,062		16,012
Residential		(152)		(150)		(77)			(105)		(484)			(70)		102		53			(66)		19			(156)		(63)
SMB		7		9		2			4		22			-		(8)		14			31		37			18		13
Total Video Net Additions (Losses)		(145)		(141)		(75)			(101)		(462)			(70)		94		67			(35)		56			(138)		(50)
Voice
Residential		10,015		9,808		9,595			9,443		9,443			9,360		9,398		9,335			9,215		9,215			9,113		9,014
SMB		1,072		1,097		1,120			1,144		1,144			1,162		1,169		1,207			1,224		1,224			1,238		1,259
Total Voice Customers		11,087		10,905		10,715			10,587		10,587			10,522		10,567		10,542			10,439		10,439			10,351		10,273
Residential		(120)		(207)		(213)			(152)		(692)			(83)		38		(63)			(120)		(228)			(102)		(99)
SMB		21		25		23			24		93			18		7		38			17		80			14		21
Total Voice Net Additions (Losses)		(99)		(182)		(190)			(128)		(599)			(65)		45		(25)			(103)		(148)			(88)		(78)
Mobile Lines (g)
Residential		310		518		793			1,078		1,078			1,359		1,672		2,020			2,320		2,320			2,605		2,855
SMB		-		-		1			4		4			13		25		40			55		55			70		85
Total Mobile Lines		310		518		794			1,082		1,082			1,372		1,697		2,060			2,375		2,375			2,675		2,940
Residential		176		208		275			285		944			281		313		348			300		1,242			285		250
SMB		-		-		1			3		4			9		12		15			15		51			15		15
Total Mobile Lines Net Additions		176		208		276			288		948			290		325		363			315		1,293			300		265
Enterprise (h)
Enterprise Primary Service Units ("PSUs")		253		258		264			267		267			269		270		272			274		274			276		280
Enterprise Net Additions		5		5		6			3		19			2		1		2			2		7			2		4

All percentages are calculated using whole numbers. Minor differences may exist due to rounding.	1
See footnotes on page 5.

Charter Communications, Inc.

Revenue, Expenses, and Adjusted EBITDA (i) ($ in millions; unaudited)

						2019											2020							2021
		1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY			1Q		2Q
Revenue
Internet	$	4,024	$	4,103	$	4,195	$	4,345	$	16,667	$	4,407	$	4,530	$	4,722	$	4,862	$	18,521	$	5,086	$	5,221
Video		4,384		4,391		4,359		4,473		17,607			4,422		4,371		4,221		4,418		17,432			4,344		4,378
Voice		504		489		477		450		1,920			457		451		449		449		1,806			399		394
Residential Revenue		8,912		8,983		9,031		9,268		36,194			9,286		9,352		9,392		9,729		37,759			9,829		9,993
Small and Medium Business		945		963		974		986		3,868			996		983		988		997		3,964			1,012		1,042
Enterprise		643		652		644		617		2,556			622		606		617		623		2,468			638		636
Commercial Revenue		1,588		1,615		1,618		1,603		6,424			1,618		1,589		1,605		1,620		6,432			1,650		1,678
Advertising Sales		345		395		394		434		1,568			365		249		460		625		1,699			344		411
Mobile		140		158		192		236		726			258		310		368		428		1,364			492		519
Other		221		196		215		220		852			211		196		214		222		843			207		201
Total Revenue	$	11,206	$	11,347	$	11,450	$	11,761	$	45,764	$	11,738	$	11,696	$	12,039	$	12,624	$	48,097	$	12,522	$	12,802
Y/Y Growth		5.1%		4.5%		5.1%		4.7%		4.9%			4.8%		3.1%		5.1%		7.3%		5.1%			6.7%		9.5%
Costs and Expenses
Programming	$	2,865	$	2,827	$	2,790	$	2,808	$	11,290	$	2,892	$	2,873	$	2,727	$	2,909	$	11,401	$	2,988	$	2,978
Regulatory, Connectivity and Produced Content		561		597		612		596		2,366			551		488		612		532		2,183			600		668
Costs to Service Customers		1,822		1,767		1,894		1,794		7,277			1,848		1,848		1,902		1,874		7,472			1,804		1,827
Marketing		735		768		793		748		3,044			766		719		788		758		3,031			751		741
Mobile		260		277		337		372		1,246			374		413		456		522		1,765			572		586
Other Expense		908		926		938		914		3,686			911		866		915		1,035		3,727			862		982
Total Operating Costs and Expenses	$	7,151	$	7,162	$	7,364	$	7,232	$	28,909	$	7,342	$	7,207	$	7,400	$	7,630	$	29,579	$	7,577	$	7,782
Adjusted EBITDA (i)
Adjusted EBITDA (i)		$4,055		$4,185		$4,086		$4,529		$16,855			$4,396		$4,489		$4,639		$4,994		$18,518			$4,945		$5,020
Y/Y Growth		4.2%		3.3%		3.4%		8.8%		5.0%			8.4%		7.3%		13.6%		10.2%		9.9%			12.5%		11.8%
Adjusted EBITDA Margin (i)		36.2%		36.9%		35.7%		38.5%		36.8%			37.4%		38.4%		38.5%		39.6%		38.5%			39.5%		39.2%

Adjusted EBITDA(i) is a non-GAAP term. See page 4 for the reconciliation of Adjusted EBITDA(i) to net income attributable to Charter shareholders as defined by GAAP.

All percentages are calculated using whole numbers. Minor differences may exist due to rounding. See footnotes on page 5.

2

Charter Communications, Inc. Capital Expenditures

($ in millions; unaudited)

						2019											2020							2021
		1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY			1Q		2Q
Capital Expenditures
Customer premise equipment (j)	$	565	$	492	$	470	$	543	$	2,070	$	463	$	518	$	520	$	501	$	2,002	$	489	$	494
Scalable infrastructure (k)		297		223		320		599		1,439			170		385		424		499		1,478			411		437
Line extensions (l)		321		363		370		390		1,444			343		422		439		437		1,641			399		400
Success Based		1,183		1,078		1,160		1,532		4,953			976		1,325		1,383		1,437		5,121			1,299		1,331
Upgrade/Rebuild (m)		131		155		165		183		634			129		155		175		156		615			145		161
Support capital (n)		351		364		326		567		1,608			356		397		456		470		1,679			377		389
Total capital expenditures	$	1,665	$	1,597	$	1,651	$	2,282	$	7,195	$	1,461	$	1,877	$	2,014	$	2,063	$	7,415	$	1,821	$	1,881
Capital expenditures included in total related to:
Commercial services	$	305	$	324	$	327	$	358	$	1,314	$	261	$	323	$	358	$	383	$	1,325	$	333	$	397
Mobile	$	88	$	93	$	100	$	151	$	432	$	87	$	125	$	139	$	157	$	508	$	112	$	124

See footnotes on page 5.

3

Charter Communications, Inc.

Reconciliation of Non-GAAP Measures to GAAP Measures ($ in millions; unaudited)

						2019											2020							2021
		1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY			1Q		2Q
Reconciliation
Net income attributable to Charter shareholders	$	253	$	314	$	387	$	714	$	1,668	$	396	$	766	$	814	$	1,246	$	3,222	$	807	$	1,020
Plus:
Net income attributable to noncontrolling interest		64		72		80		108		324			71		110		118		155		454			114		138
Interest expense, net		925		945		963		964		3,797			980		957		946		965		3,848			983		1,004
Income tax expense		119		84		126		110		439			29		166		177		254		626			216		281
Depreciation and amortization		2,550		2,500		2,415		2,461		9,926			2,497		2,428		2,370		2,409		9,704			2,441		2,354
Stock compensation expense		85		82		71		77		315			90		90		83		88		351			134		100
Other (income) expenses, net		59		188		44		95		386			333		(28)		131		(123)		313			250		123
Adjusted EBITDA (i)	$	4,055	$	4,185	$	4,086	$	4,529	$	16,855		$	4,396	$	4,489	$	4,639	$	4,994	$	18,518		$	4,945	$	5,020
Net cash flows from operating activities	$	2,686	$	2,761	$	2,943	$	3,358	$	11,748		$	3,220	$	3,529	$	3,664	$	4,149	$	14,562		$	3,751	$	3,999
Less:
Purchases of property, plant and equipment		(1,665)		(1,597)		(1,651)		(2,282)		(7,195)			(1,461)		(1,877)		(2,014)		(2,063)		(7,415)			(1,821)		(1,881)
Change in accrued expenses related to capital expenditures		(376)		(52)		(21)		504		55			(388)		214		104		(7)		(77)			(75)		(50)
Free cash flow (i)	$	645	$	1,112	$	1,271	$	1,580	$	4,608	$	1,371	$	1,866	$	1,754	$	2,079	$	7,070	$	1,855	$	2,068

See page 2 for detail of the components included within Adjusted EBITDA (i).

The above schedule is presented in order to reconcile Adjusted EBITDA (i) and free cash flow (i), non-GAAP measures, to the most directly comparable GAAP measures in accordance with Section 401(b) of the Sarbanes-Oxley Act. See footnotes on page 5.

4

Charter Communications, Inc.

Notes

1. Passings represent our estimate of the number of units, such as single family homes, apartment and condominium units and small and medium business and enterprise sites passed by our cable distribution network in the areas where we offer service. These estimates are based upon the information available at this time and are updated for all periods presented when new information becomes available.
2. Customer relationships include the number of customers that receive one or more levels of service, encompassing Internet, video and voice 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.
3. Penetration represents residential and SMB customers as a percentage of estimated passings. Penetration excludes mobile-only customers.
4. 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 revenue and customers.
5. 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 revenue and customers.
6. Single play, double play and triple play penetration represents the number of residential single play, double play and triple play customers, respectively, as a percentage of residential customer relationships, excluding mobile.
7. 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.
8. Enterprise PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
9. 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.
10. Customer premise equipment includes costs incurred at the customer residence to secure new customers and revenue generating units, including customer installation costs and customer premise equipment (e.g., digital receivers and cable modems, etc.).
11. Scalable infrastructure includes costs, not related to customer premise equipment or our network, to secure growth of new customers and revenue generating units, or provide service enhancements (e.g., headend equipment).

1. Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).

1. Upgrade/rebuild includes costs to modify or replace existing fiber/coaxial cable networks, including betterments.

1. Support capital includes costs associated with the replacement or enhancement of non-network assets due to technological and physical obsolescence (e.g., non-network equipment, land, buildings and vehicles).

5