Charter Communications : 4Q22 Trending Schedule

Charter Communications, Inc. Customer Metrics

(in thousands except ARPU and penetration, unaudited)

						2020											2021											2022
		1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY
Footprint (a)
Estimated Passings		52,534		52,830		53,138		53,416		53,416			53,708		54,000		54,268		54,521		54,521			54,739		55,008		55,288		55,573		55,573
Customer Relationships (b)
Residential		27,745		28,496		28,912		29,079		29,079			29,361		29,660		29,823		29,926		29,926			30,035		29,942		29,946		29,988		29,988
Small and Medium Business ("SMB")		1,976		1,980		2,021		2,051		2,051			2,071		2,104		2,126		2,143		2,143			2,163		2,182		2,195		2,207		2,207
Total Customer Relationships		29,721		30,476		30,933		31,130		31,130			31,432		31,764		31,949		32,069		32,069			32,198		32,124		32,141		32,195		32,195
Residential		468		751		416		167		1,802			282		299		163		103		847			109		(93)		4		42		62
SMB		18		4		41		30		93			20		33		22		17		92			20		19		13		12		64
Total Customer Relationships Net Additions (Losses)		486		755		457		197		1,895			302		332		185		120		939			129		(74)		17		54		126
Total Customer Relationship Penetration of Estimated Passings (c)		56.6%		57.7%		58.2%		58.3%		58.3%			58.5%		58.8%		58.9%		58.8%		58.8%			58.8%		58.4%		58.1%		57.9%		57.9%
Monthly Residential Revenue per Residential Customer (d)	$	112.73	$	110.82	$	109.03	$	111.85	$	111.15	$	112.18	$	112.85	$	115.15	$	114.14	$	113.61	$	113.28	$	116.00	$	115.16	$	114.20	$	114.66
Monthly SMB Revenue per SMB Customer (e)	$	168.83	$	166.06	$	164.77	$	163.02	$	165.60	$	163.79	$	166.28	$	167.29	$	164.59	$	165.50	$	163.96	$	165.66	$	164.89	$	163.44	$	164.50
Residential Customer Relationships Penetration
Single Play Penetration (f)		43.6%		44.0%		44.2%		44.5%		44.5%			45.2%		45.7%		46.4%		46.7%		46.7%			47.2%		47.8%		48.5%		49.1%		49.1%
Double Play Penetration (f)		31.2%		31.7%		32.3%		32.7%		32.7%			32.6%		32.7%		32.8%		33.0%		33.0%			33.0%		33.1%		33.1%		33.1%		33.1%
Triple Play Penetration (f)		25.2%		24.3%		23.5%		22.9%		22.9%			22.2%		21.6%		20.9%		20.4%		20.4%			19.8%		19.1%		18.4%		17.8%		17.8%
% Residential Non-Video Customer Relationships		44.0%		45.1%		45.7%		46.2%		46.2%			47.3%		48.0%		48.7%		49.2%		49.2%			49.7%		50.4%		51.1%		51.7%		51.7%
Internet
Residential		25,471		26,313		26,807		27,023		27,023			27,357		27,722		27,965		28,137		28,137			28,301		28,259		28,320		28,412		28,412
SMB		1,775		1,783		1,826		1,856		1,856			1,877		1,912		1,934		1,952		1,952			1,973		1,994		2,008		2,021		2,021
Total Internet Customers		27,246		28,096		28,633		28,879		28,879			29,234		29,634		29,899		30,089		30,089			30,274		30,253		30,328		30,433		30,433
Residential		563		842		494		216		2,115			334		365		243		172		1,114			164		(42)		61		92		275
SMB		19		8		43		30		100			21		35		22		18		96			21		21		14		13		69
Total Internet Net Additions (Losses)		582		850		537		246		2,215			355		400		265		190		1,210			185		(21)		75		105		344
Video
Residential		15,550		15,652		15,705		15,639		15,639			15,483		15,420		15,287		15,216		15,216			15,093		14,853		14,642		14,497		14,497
SMB		524		516		530		561		561			579		592		604		617		617			628		642		649		650		650
Total Video Customers		16,074		16,168		16,235		16,200		16,200			16,062		16,012		15,891		15,833		15,833			15,721		15,495		15,291		15,147		15,147
Residential		(70)		102		53		(66)		19			(156)		(63)		(133)		(71)		(423)			(123)		(240)		(211)		(145)		(719)
SMB		-		(8)		14		31		37			18		13		12		13		56			11		14		7		1		33
Total Video Net Additions (Losses)		(70)		94		67		(35)		56			(138)		(50)		(121)		(58)		(367)			(112)		(226)		(204)		(144)		(686)
Voice
Residential		9,360		9,398		9,335		9,215		9,215			9,113		9,014		8,784		8,621		8,621			8,465		8,200		7,929		7,697		7,697
SMB		1,162		1,169		1,207		1,224		1,224			1,238		1,259		1,273		1,282		1,282			1,288		1,287		1,287		1,286		1,286
Total Voice Customers		10,522		10,567		10,542		10,439		10,439			10,351		10,273		10,057		9,903		9,903			9,753		9,487		9,216		8,983		8,983
Residential		(83)		38		(63)		(120)		(228)			(102)		(99)		(230)		(163)		(594)			(156)		(265)		(271)		(232)		(924)
SMB		18		7		38		17		80			14		21		14		9		58			6		(1)		-		(1)		4
Total Voice Net Additions (Losses)		(65)		45		(25)		(103)		(148)			(88)		(78)		(216)		(154)		(536)			(150)		(266)		(271)		(233)		(920)
Mobile Lines (g)
Residential		1,359		1,672		2,020		2,320		2,320			2,605		2,855		3,085		3,448		3,448			3,805		4,134		4,516		5,116		5,116
SMB		13		25		40		55		55			70		85		99		116		116			132		147		161		176		176
Total Mobile Lines		1,372		1,697		2,060		2,375		2,375			2,675		2,940		3,184		3,564		3,564			3,937		4,281		4,677		5,292		5,292
Residential		281		313		348		300		1,242			285		250		230		363		1,128			357		329		382		600		1,668
SMB		9		12		15		15		51			15		15		14		17		61			16		15		14		15		60
Total Mobile Lines Net Additions		290		325		363		315		1,293			300		265		244		380		1,189			373		344		396		615		1,728
Enterprise (h)
Enterprise Primary Service Units ("PSUs")		254		255		257		259		259			261		265		269		272		272			274		277		282		284		284
Enterprise Net Additions		2		1		2		2		7			2		4		4		3		13			2		3		5		2		12

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

See footnotes on page 5.

1

Charter Communications, Inc.

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

						2020											2021											2022
		1Q		2Q		3Q		4Q	FY			1Q		2Q		3Q		4Q	FY			1Q		2Q		3Q		4Q	FY
Revenue
Internet	$	4,407	$	4,530	$	4,722	$	4,862	$	18,521	$	5,086	$	5,221	$	5,363	$	5,424	$	21,094	$	5,452	$	5,562	$	5,571	$	5,637	$	22,222
Video		4,422		4,371		4,221		4,418		17,432			4,344		4,378		4,502		4,406		17,630			4,346		4,484		4,379		4,251		17,460
Voice		457		451		449		449		1,806			399		394		409		396		1,598			391		398		391		379		1,559
Residential Revenue		9,286		9,352		9,392		9,729		37,759			9,829		9,993		10,274		10,226		40,322			10,189		10,444		10,341		10,267		41,241
Small and Medium Business		996		983		988		997		3,964			1,012		1,042		1,062		1,054		4,170			1,059		1,080		1,082		1,080		4,301
Enterprise		622		606		617		623		2,468			638		636		656		643		2,573			661		669		673		674		2,677
Commercial Revenue		1,618		1,589		1,605		1,620		6,432			1,650		1,678		1,718		1,697		6,743			1,720		1,749		1,755		1,754		6,978
Advertising Sales		365		249		460		625		1,699			344		411		391		448		1,594			383		460		481		558		1,882
Mobile		258		310		368		428		1,364			492		519		535		632		2,178			690		726		750		876		3,042
Other		211		196		214		222		843			207		201		228		209		845			218		219		223		219		879
Total Revenue	$	11,738	$	11,696	$	12,039	$	12,624	$	48,097	$	12,522	$	12,802	$	13,146	$	13,212	$	51,682	$	13,200	$	13,598	$	13,550	$	13,674	$	54,022
Y/Y Growth		4.8%		3.1%		5.1%		7.3%		5.1%			6.7%		9.5%		9.2%		4.7%		7.5%			5.4%		6.2%		3.1%		3.5%		4.5%
Costs and Expenses
Programming	$	2,892	$	2,873	$	2,727	$	2,909	$	11,401	$	2,988	$	2,978	$	2,983	$	2,895	$	11,844	$	2,977	$	2,972	$	2,871	$	2,800	$	11,620
Regulatory, Connectivity and Produced Content		551		488		612		532		2,183			600		668		634		592		2,494			556		599		587		561		2,303
Costs to Service Customers		1,848		1,848		1,902		1,874		7,472			1,804		1,827		1,899		1,863		7,393			1,899		1,920		1,982		1,971		7,772
Marketing		766		719		788		758		3,031			751		741		788		791		3,071			826		806		861		846		3,339
Mobile		374		413		456		522		1,765			572		586		607		724		2,489			760		797		846		982		3,385
Other Expense (j)		911		866		915		1,035		3,727			862		982		949		968		3,761			969		995		991		1,032		3,987
Total Operating Costs and Expenses (j)	$	7,342	$	7,207	$	7,400	$	7,630	$	29,579	$	7,577	$	7,782	$	7,860	$	7,833	$	31,052	$	7,987	$	8,089	$	8,138	$	8,192	$	32,406
Adjusted EBITDA (i)
Adjusted EBITDA (i)		$4,396		$4,489		$4,639		$4,994	$	18,518			$4,945		$5,020		$5,286		$5,379	$	20,630			$5,213		$5,509		$5,412		$5,482	$	21,616
Y/Y Growth		8.4%		7.3%		13.6%		10.2%		9.9%			12.5%		11.8%		13.9%		7.7%		11.4%			5.4%		9.7%		2.4%		1.9%		4.8%
Adjusted EBITDA Margin (i)		37.4%		38.4%		38.5%		39.6%		38.5%			39.5%		39.2%		40.2%		40.7%		39.9%			39.5%		40.5%		39.9%		40.1%		40.0%

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)

						2020											2021											2022
		1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY
Capital Expenditures
Customer premise equipment (k)	$	463	$	518	$	520	$	501	$	2,002	$	489	$	494	$	513	$	471	$	1,967	$	469	$	560	$	577	$	603	$	2,209
Scalable infrastructure (l)		170		385		424		499		1,478			411		437		375		454		1,677			371		389		418		613		1,791
Line extensions (m)		343		422		439		437		1,641			399		400		392		451		1,642			542		694		826		928		2,990
Success Based		976		1,325		1,383		1,437		5,121			1,299		1,331		1,280		1,376		5,286			1,382		1,643		1,821		2,144		6,990
Upgrade/Rebuild (n)		129		155		175		156		615			145		161		178		222		706			146		181		208		310		845
Support capital (o)		356		397		456		470		1,679			377		389		403		474		1,643			329		369		377		466		1,541
Total capital expenditures	$	1,461	$	1,877	$	2,014	$	2,063	$	7,415		$	1,821	$	1,881	$	1,861	$	2,072	$	7,635		$	1,857	$	2,193	$	2,406	$	2,920	$	9,376
Of which: Commercial services	$	261	$	323	$	358	$	383	$	1,325	$	333	$	397	$	353	$	362	$	1,445	$	365	$	376	$	369	$	401	$	1,511
Capital expenditures included in total related to:
Capital expenditures, excluding line extensions	$	1,118	$	1,455	$	1,575	$	1,626	$	5,774	$	1,422	$	1,481	$	1,469	$	1,621	$	5,993	$	1,315	$	1,499	$	1,580	$	1,992	$	6,386
Line extensions (m)		343		422		439		437		1,641			399		400		392		451		1,642			542		694		826		928		2,990
Total capital expenditures	$	1,461	$	1,877	$	2,014	$	2,063	$	7,415	$	1,821	$	1,881	$	1,861	$	2,072	$	7,635	$	1,857	$	2,193	$	2,406	$	2,920	$	9,376
Capital expenditures included in total related to:
Core cable(p)	$	1,374	$	1,752	$	1,875	$	1,906	$	6,907	$	1,709	$	1,757	$	1,742	$	1,945	$	7,153	$	1,551	$	1,741	$	1,785	$	2,132	$	7,209
Mobile		87		125		139		157		508			112		124		119		127		482			74		95		96		111		376
Rural construction initiative(q)		-		-		-		-		-			-		-		-		-		-			232		357		525		677		1,791
Total capital expenditures	$	1,461	$	1,877	$	2,014	$	2,063	$	7,415	$	1,821	$	1,881	$	1,861	$	2,072	$	7,635	$	1,857	$	2,193	$	2,406	$	2,920	$	9,376

See footnotes on page 5.

3

Charter Communications, Inc.

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

						2020											2021											2022
		1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q		4Q		FY
Reconciliation
Net income attributable to Charter shareholders	$	396	$	766	$	814	$	1,246	$	3,222	$	807	$	1,020	$	1,217	$	1,610	$	4,654	$	1,203	$	1,471	$	1,185	$	1,196	$	5,055
Plus:
Net income attributable to noncontrolling interest		71		110		118		155		454			114		138		190		224		666			186		237		182		189		794
Interest expense, net		980		957		946		965		3,848			983		1,004		1,016		1,034		4,037			1,060		1,109		1,160		1,227		4,556
Income tax expense		29		166		177		254		626			216		281		347		224		1,068			345		489		360		419		1,613
Depreciation and amortization		2,497		2,428		2,370		2,409		9,704			2,441		2,354		2,270		2,280		9,345			2,294		2,240		2,177		2,192		8,903
Stock compensation expense		90		90		83		88		351			134		100		98		98		430			147		104		109		110		470
Other (income) expenses, net		333		(28)		131		(123)		313			250		123		148		(91)		430			(22)		(141)		239		149		225
Adjusted EBITDA (i)	$	4,396	$	4,489	$	4,639	$	4,994	$	18,518		$	4,945	$	5,020	$	5,286	$	5,379	$	20,630		$	5,213	$	5,509	$	5,412	$	5,482	$	21,616
Net cash flows from operating activities	$	3,220	$	3,529	$	3,664	$	4,149	$	14,562	$	3,751	$	3,999	$	4,263	$	4,226	$	16,239	$	3,647	$	3,734	$	3,757	$	3,787	$	14,925
Less:
Purchases of property, plant and equipment		(1,461)		(1,877)		(2,014)		(2,063)		(7,415)			(1,821)		(1,881)		(1,861)		(2,072)		(7,635)			(1,857)		(2,193)		(2,406)		(2,920)		(9,376)
Change in accrued expenses related to capital expenditures		(388)		214		104		(7)		(77)			(75)		(50)		74		131		80			10		118		156		269		553
Free cash flow (i)	$	1,371	$	1,866	$	1,754	$	2,079	$	7,070	$	1,855	$	2,068	$	2,476	$	2,285	$	8,684	$	1,800	$	1,659	$	1,507	$	1,136	$	6,102

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. Other expense excludes stock compensation expense. Total operating costs and expenses excludes stock compensation expense, depreciation and amortization and other operating (income) expenses, net.
11. 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.).

1. 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.
2. 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).
3. Core cable represents total capital expenditures excluding mobile and rural construction initiative capital expenditures.
4. The rural construction initiative subcategory includes expenditures associated with our Rural Construction Initiative (for which separate reporting was initiated in 2022), excluding customer premise equipment and installation.

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