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CHTR Cco Holdings Capital

Participants
Stefan Anninger Investor Relations
Tom Rutledge Chairman and Chief Executive Officer
Chris Winfrey Chief Financial Officer
Doug Mitchelson Credit Suisse
Ben Swinburne Morgan Stanley
Brett Feldman Goldman Sachs
Craig Moffett MoffettNathanson
Peter Supino Bernstein
Phil Cusick JPMorgan
Michael Rollins Citi
Jessica Reif Ehrlich Bank of America
Jonathan Chaplin New Street
Bryan Kraft Deutsche Bank
Vijay Jayant Evercore
Call transcript
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Operator

Good day, and thank you for standing by. Welcome to Charter's First Quarter 2021 Investor Call. [Operator Instructions] I'd now like to hand the conference over to your speaker today, Stefan Anninger. Please go ahead.

Stefan Anninger

Good morning, and welcome to Charter's first quarter 2021 investor call. this the be Financial accompanies website, on that under ir.charter.com, Information presentation call found can our The section.

other of Before to we our filed factors most number our and filings, this remind like contained and risk XX-Q you that recent our proceed, there are including I SEC cautionary statements would morning. also in XX-K a

We call. this cautionary statements will on not review those risk factors and other

or plans call uncertainties and to Various encourage constitute remarks actual management's them make that in statements concerning or future. current you results anticipated additional no expectations, on make historical and the risks reflect cause we These only, predictions, However, statements. carefully. statements statements undertakes this prospects Charter subject forward-looking or forward-looking to to forward-looking view that revise from to we are obligation forward-looking results. read differ to Any statements may such and update

we as non-GAAP noted and in referring of to presentation course calculated be Please otherwise Chris to call to Winfrey, in a that, turn titles will this growth With are measures let's Tom unless on the defined with as Tom. measures, call, earnings measures non-GAAP not the specified. our other that Charter, over similar year-over-year by today's be During also and the basis, we companies. today's by CEO; and all may on comparable reconciled On and materials. call, have used rates defined Chairman note call Rutledge, our CFO. These

Tom Rutledge

Stefan. Thanks,

X.X% with activity. We relationships XXX,XXX an the quarter in move with well year-over-year. during growth environment lower customer in execute consumer over to of first continue the quarter We added even

last to an on grew by – or grow million a in the and remain but adjusted as half to services. resume, flow we've X the activities flow have year has the opportunities growth we and the of our EBITDA develop during XX%. and economy X.X%. and XX.X% given in our XXX,XXX mobile nearly to more Internet network, impact the XXX,XXX sales of our free our $XXX customers rates our cash COVID made over added added continued also which we We our EBITDA healthy enable us for and by and We operations, lines, customers' year-over-year reopens quarter the the cash second free ability And economy at offer normal investments confident in superior we to expect year. million products

of rural Since will areas. successful focused million year value billion the our X committed last expanded has approximately start we've House than and our anniversary of And Since annual the we've to our then, Cable enterprise reach our customers, last to billion, $XX.X Internet of transaction $XX to over acquire million by and serviceability over $XXX through to network mark has in businesses. to more infrastructure over and and the While from Networks. May invested Bright XXXX, our and X has EBITDA added X execution the more technology. pandemic, billion. we've operations Warner homes increased extended years, $XX closing XX We've on and extending X also the the Time billion

and new billion, gigabit X million growth. offset the to Internet the provide U.S., hour scale, work over Since consumer least have customers expensive reach in close, years, RDOF to X we now at a service mobile at market. and our hired our thousands Since broadband billion to Over products closed, expect to the which of available next we potential. speeds. of of enhanced broadband the spend in prepared to and opportunities we're And the rural additional wireline our further efficiency all wage of to we've possible, we our the into launch our products $X operations. quality good $X.X and expand subsidies our best $XX We've unserved exploring by fuels and jobs also by minimum of employees locations build to least the actively committed bringing fastest transactions back per mobile

Importantly, we for our as pace. improve continue home the connectivity data demand continues rapid at a products to grow to in very

growth increasing our We're million also services, of totals a data video of factors, e-learning speed And network, non-traditional our for use to services telemedicine including XXX usage devices, to the for up quarter, was by products and for the will network video and During the IP month. new video per non-video gigabytes connected holographic we our full is for in terabyte being the the as such a or used and XK, IP quarter, core of our number developed about growing non-video per nearly improve the data first growth part that virtual and at in performance customer. including as Internet and marketplace. usage XXX we which XX% by of customers now in month continued more customers the continuously by of and conferencing significant see and quarter. in are average, gaming, to The speak, On in pace capacity hubs and formats, average customers data demand to growth be dictated Internet per emerging XX% now number nearly or the a driven Close devices reality example. customers year-over-year. and first in augmenting

multi-gigabit ability downstream and DOCSIS the second cost-effective us a upstream. already to capacity X which in to network to offer have which gives We least gigabit approach per the at X.X, gigahertz, in our expand we've using speeds deployed, the X.X

to the have the cost addition, usage X.X and other data services. multi-gigabit in we efficiently in technologies heavy our – emerging additional DOCSIS with serving In upstream, needs quality and in customers both of offer speeds connectivity downstream

higher while mobile state-of-the-art and deliver our Mobile is a converging is into and saving money package, are to deployed have a single of has combination fully broadband which founded we asset, strategy fixed efficient delivered over wireline even While networks. capabilities, network capitally products. a connectivity service providing on has a path great which and customers'

household product $XXX of telecom services. connectivity broadband By full-service of broadband mobile spend Today, and underpenetrated that connectivity with Charter choosing An $XXX combined approximately $XX mobile dollars can and opportunity. provider, service. hundreds, month its remain and better monthly long-term is and thousands very broadband low. service. fixed year per on Charter share average our the And broadband, broadband, served mobile a as of relative household only save we lines big wireline customers of Our generates spends a passing even three to two-plus much competitors, $XX wireline including customer by spend on of and capabilities mobile their with a

the carrier mobile consumer over in bills do with we area our wireline we by Charter same wireline will a And costs. underpenetrated customer telephone so goal our predominant because did growth our voice, by where remain XX%. we reducing reduce as for the is phone with service grow time can made to and Meaning charter long

the to turn I'll Now call over Chris.

Chris Winfrey

Thanks, Tom.

the time I reporting. our comments for of related last that Before call, outlook in update getting their details very the and due year backdrop few into conference and prior to help quarter's comments to for results quarter, regarding a COVID On comparability some commentary difficult XXXX, expectations models good XXXX should financial through the of effects the walking for our understand outlook investors be customer to and growth the Those XXXX. were given what XXXX. spent the to intended a

changed. Internet has call, we while not relationships outlook additions. at of last Slide expect the schedules to repeat with XXXX remains presentation, or comparisons. XX comparison everything year, growth and customer where XX we've continue customer and earnings I I we today's to above last help included in again be our and for COVID So won't XXXX general said year-over-year the And better on will to the net the reference XXXX, financial on provided

required as utility residential continue some investors, product to have that, GAAP individual the revenues our residential product point, of declining likely rules revenues allocation will product a bundle residential impact on and one voice at Internet, line. significant all it's collapse Because of Secondly, into video to revenue revenues. by

strong mobile our and declined quarter, normal from are by not Internet, we first XXX,XXX normalization. customers XXX,XXX churn there fewer in regardless have XX quarter specifically we added hand, relationships are customer by debt. trends the selling we than a in by for all means months X. opportunities a lower SMB over Despite In to grew reasons the on But one first we and the the Slide quarter. customers Internet the marketplace, in churn, footprint, Including XX,XXX; lower move in in residential ARPU of remain SMB, leader XXX,XXX residential lower Video X last XXXX by market wireline by the lines. of continue also and the transactions XXX,XXX; it to that X.X markets We means, months. and a by higher non-pay the share XX to the environment, infrastructure. mentioned. we voice generally. Those XXX,XXX share Internet reduced from path still levels service competing operating our and our expense the residential our X.X% last of during and we in a added on across which declined gained total sales Turning total slow benefit Customer to results gain levels, million bad I and the or in lower we returned activity XXX,XXX and over quarter million the in in grew significantly on

we XXX,XXX quarter, the lost first first customers declined customers in of XXX,XXX XXXX. residential Our similar of in the consistent to also voice, residential loss video in wireline with of the quarter the saw loss XXX,XXX quarter the by of XXX,XXX, we XXXX. In

lines good the of Gig Turning XXX,XXX And the X.X had lines. and Unlimited By a the mobile in quarter. both of as the to quarter, million of end with lines mobile added mobile. we We mix

scales Spectrum continue with per the business of results stand-alone less line be loss expected pleased and trajectory as the profitability. Mobile, We to with to EBITDA

total self-install per million essentials in year-over-year, revenue revenue. that revenue non-video year, given higher our ARPU within mix video not lower mobile our reflect video-on-demand base, and given mind residential customers customers stream rates. last of pay-per-view X.X% X.X%. customer lower and the higher declined revenue Keep and relationship does any residential choice, we higher by the X.X mix customers, by or Over of grew Residential installation

Slide reflecting shows, As by grew customer residential X year-over-year, relationship X.X% growth. revenue

year-over-year, faster last wholesale quarter's SMB Enterprise than was X.X% a Turning to by revenue excluding grew grew than X.X% better quarter X.X%, by Enterprise X.X%, revenue. revenue and up PSUs grew commercial. bit by year-over-year. bit by also a growth. last

revenue. to revenue quarter declined by year-over-year First advertising due less X.X% political

late lower revenue first growing revenue by revenue March by last total, quarter capabilities. being declined with grew late revenue. X.X% $XXX fees, that COVID impacts was revenue X% device higher up offset our $XXX totaled non-political some due partly revenue. Other and Mobile of revenue to RSN advertising X.X% by year-over-year, In consolidated Our million by year-over-year, primarily year-over-year. advanced driven million

Moving delayed revenue to expenses due season, year-over-year Essentials pay-per-view and expenses games by million from to when the the prior quarter, rates, Stream, and Slide to lighter due I NBA operating the In Programming in and such content Choice, of year-over-year. higher sports leagues operating driven first the year-over-year quarter, grew fewer expenses connectivity with X.X% total lower a video combined period on fewer games by or pay-per-view as start mix than X.X% mentioned. Laker normal by tied more the produced games by this $XXX COVID. to played year X.X%, increased higher offset grew X. packages, Regulatory lower resulting to

that by X.X% was Excluding year-over-year to Cost X.X% customer by grew line those X.X% related million RSNs, which to benefit should in XXXX, this trends service year. normalize sports the expense trends lower The relationship compared our growth. remains our bad continues declined decline rights expectation payment year-over-year. $XXX customers course debt, to to this bad of item from record over costs to though debt by driven similar

which year, other and through $XX wage of again outsized starting in to in discussed year of relate that wage we direction, hourly increases put a March we last reach the from saw we've March pressure commitment previously to in our XXXX. minimum On this and

by X.X%, cost device customer other costs. Adjusted by acquisition expenses wage Excluding $XXX Marketing of increase debt, starting of a bonuses revenue, X% year-over-year. to the minimum Mobile in customers related by reflecting grew and mobile and and growth. In to cost service by declined comprised X.X% relationship by EBITDA year-over-year, were operating bad X.X% sales and declined driven service expenses COVID. grew adjustment and totaled million including to the the tied expenses device quarter. primarily XX.X% non-recurring

Excluding bad EBITDA debt have growth lower. both been mobile percentage and rate in would X.X years, our points

primarily on first versus of $XXX $XXX Charter income We in X. year. by the was million net The million higher Slide shareholders income net last generated to EBITDA. year-over-year driven to attributable Turning quarter increase adjusted

Turning spend, with primarily totaled usage, headroom customer the in at incremental quarter, to reclaim our Slide Capital infrastructure the of pace higher expenditures augmentation and to COVID. capacity billion $XXX prior first scalable network our of to normal $X.X driven growth network year-over-year, we million an related spending X. increase maintained for by to

also yard-off of more design, make-ready with spend, this The year. due tends rural to to spent before extensions start incur construction be network we including any This We will does line continued passings to activated. on areas. later front-loaded which cost not to expansion, include and build-outs are disclose

metric construction $XXX meaningful. lets mobile-related capital in build-outs. this CapEx before passing store and year next to accounted into on cost any investments is million in by for back-office well be mostly support take will it quarter, systems spent was driven mobile per our and We So cadence which

For XXXX, capital year the any investments, RDOF percentage versus we relatively full consistent a revenue to as expect cable XXXX. expenditures, of be excluding cable

in billion billion. generated forma annualized year-over-year. in XX% quarter, cash rate shows, billion cash financing of finished We the current increase our run debt XX we quarter with Slide flow $X.X of free completed for $X this and pro interest, As principal, activity April is an consolidated $XX.X

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

share. in of an repurchased of billion $XX During quarter, September about of at we – Holdings $X X.X price or common price Charter Charter's units, XXXX, average repurchased average billion million per shares the of $XXX Charter an totaling equity share. shares XX% $XXX at we've In per

by That don't year. flows tax given from we in tax improve looking state factors includes and interest XX% becoming Subject which by NOL carryover any be Turning our are XXXX, expense, be advance to consolidated that less of XX% bit statements. XXXX, federal to our XXXX described, changes tax some cash in a until cash taxes are captured a rate Newhouse, to our multiple we tax to the bulk taxes and expenditures rate multiplied to We cash that capital partnership separately impact payer financial XXXX tax a cash to to on XX. with to anticipate less than the in utilized federal Slide existing just end attributes. profile. meaningful our this range corporate the for lower our cash we're estimate I financing what expect approximate our There expect and EBITDA, and always of to years for tax ways distributions the

by growing of customers' model operating Our saving money.

with asset now capabilities growing to equity use value periods to infrastructure a on balance with over now all we're network future a our for our the results with our long our top flow of Our grow to returns. and service together work and of to in until services And and sheet products expect we time. core reflect connectivity strategy tax-advantaged of customers Operator, good Q&A. levered for cash ancillary ready lot

Operator

Instructions] Our comes the [Operator please. Doug question Credit of Suisse. first Go with Mitchelson ahead line from

line is Your open.

Doug Mitchelson

down threw on wireline Chris. like fixed morning. One much. Good so Tom. for convergence you – the I feel Tom, wireless fixed bit a for One Thanks gauntlet convergence.

of of on years? X a you a past, you marketing? or expect – if billion posture talk of XX know build-out a or lines both. the healthy suggest growth already the returns about market spending. And CapEx to already. side. when mobile in at next economics market have telecom is you of regarding been the over wireless your headed, think with match that's wouldn't point on more but home aggressive wireless where years, including the target You answered Thank that $X.X pretty can the look should Does pace what some the $X the owner's X out I the CapEx asked suggest I net then, your have you've And spend the commentary in entire side market you and Chris, need investors billion the up on wireline $XXX

Tom Rutledge

Sure.

I grow an that multiyear rapidly. And those So at a yes, have an over is we that continue opportunity I to opportunity our think when significant. of Doug, we you to to look period penetration think mobile products, – opportunity the have

telecom in My that both price of lots – value and exposition terms create the and make And front of sure at terms charge. is is, value way just and of on to us us we Charter the and their for time, attributes our for for to of significant runway purpose position a market happens so – the same there there's much that we that product there spin to how sell while, show creating moving products that opportunity of in we consumers. the are in

convergence the we've In company's an moving deployed economics customers we in opportunities good already the also get in long-term and and CBRS its And we advantage deployment to And additional carry in of many a there's for to ways. create are ways. terms have take convergence, in traffic relationship spectrum structure. Wi-Fi continued for over and The network in that it. the purchased the we we cost MVNO. the toward have the value that near-term that of our are owners' we And economics owners' that and as many we

Chris Winfrey

much investing through up built, a be this federal rural new as a real areas our they what payback. think desired. just have we broadband a are, way and we terms project opportunities space we $X a that ability white there typically be penetrate programs the needed that of a of have that have cost service X about they passing when call might additional financing, that in open in billion may of and what result opportunities. think think projects construction make confidence longer as product we with these or than RDOF, over higher through either a spend, Doug, that's being these we've high we On about the in expensive as of them Phase per you RDOF more But But time to markets the

can financial low-risk you cost look with means what And from time. revenue together to terms is going model have ARPU, the like on so both what of that in confidence pretty is, over high perspective and assumptions a

So I the think to we'd cash-from-cash in the payback payback be type double terms can of be I've the expect over that XX mid-teens. mentioned in digits the of years, so past But IRR projects years. for – these

extended which continue suburban And it's opportunities, does those as which attractive time. a part fill footprint our built grow types terms our open low it's into to having is of think could any this more right of the what a do for become building like, we open think by actually the think aren't of to more our What consistent We ability to into we those up edge those to attractive of broadband of way for as can and or that so And broadband to serve. some communities returns. rural our haven't in that these investment have risk of thing we as factored as in way networks it's on over opportunities additional that model. the we for we shareholders achieve with strategy, well communities think build

about done. M&A point type hasn't have a that when actually to cable as that just cable time it So think it's at there those liked from alternative where way have in economics, not is would to of different been we another unfortunately much think you about M&A

Doug Mitchelson

Great. Thank you.

Stefan Anninger

take will next please. our we James, question

Operator

from Our please. comes Ben line Go next Morgan Stanley. of question the Swinburne with ahead

Your line open. is

Ben Swinburne

kind of get of sort service consumer Thanks. yesterday's your of call the Good for get up opportunity network the you and symmetric how Tom, if could on to Charter and offer morning. on I came and demand for was we products Comcast symmetric This the offer to sort wondering need there. perspective.

through cost, debt this X.X and intensity line seeing, of You touched guess capital past then could of I record like helping lot sort lasting you hurting a but move I of could back mean know know, I this this companies. seeing in Thank like normalizing? us on we in we're ramp prepared remarks. an But we're it at notice sense I'm around up, if adds, and like a though you consumer wondering, – give would end low things And churn are even the little any it that your lows, time whether if expectation vaccinations impossible the seeing This you up if seeing is you gross we're so the your subdued you're and the X.X – that's was just that across Chris, I it's which enough sort level of year? if levels. unusually seems activity wondering signs to have? guys. would just Or is bad mind just

Tom Rutledge

month, needed issue usage way delivered using and And that quite have. But are lot about most of over basically, where and the for television that it's discussion. and being in you So a is people is gigs said the Ben, of it's are the I view terabyte that the our upstream our presentation used, a month used of all think a a is through networks the per actual XXX today complicated sufficient customers we to current uses is how households. are if using and capacity IP

in think costs asymmetric So expand terms capacity we those to is view very near-term. the a see by used our means. positioned alternative And we currently our a they a products need than at market the plant And changing are that point perspective from the from see the immediate do lower products capability make an from network have the perspective on actually that competitive however we dynamics, technical need immediate do We plant. way how it. develop. we changing don't cost a may capital But upgrade don't have much based an is the to don't upgrade network of in of to in develop intensity to do well on but that, of

so serve today, And operate products serve think continue But on up market grow develops. should very marketplace our to network capacity the that way based positioned we that a need with upstream. we the downstream and the we efficient in we're to in to more than way

Ben Swinburne

Great.

Chris Winfrey

Ben, said it's lower significant this year's bad activity, last growth by normalizing hoped driving down in of as – what subscriber lower and have and level which financial slower in expected outsized I which transaction we subscriber compounded prepared have growth for. remarks, and year on we is the of the an result. result temporary costs true. of this a quarter's the Like really level marketplace, slightly It's or produces than growth, debt, would the the benefit churn that is EBITDA activity

little cash commissions move and through preference to results of adds pressure flow. opportunities marketing what free and on and financial through would and year. taker. opens financial to by and Our And contributes be on a which market to as level through the our EBITDA contributes a to put to that and increasing up us the a We'd for a long-term bit share-taker activity, normalizing offensive It's some save opportunity is what acquire customers be higher money. net have like those short-term a share selling sales of higher additional pressure to

market back. coming have the seen We slowly

moving this is slight It's some non-pay would is not not fast it That right the from subsidy of – of us on like. as topic. a different that’s much move just moving all because as so out And there as in churn today, which includes direction.

of normal been back office here that country. traffic even terms. of it us rest pickup the it's continue will start we're I across that pandemic think in York getting quick. It's to the and normalize, place day in the pretty start to every to have – the through to and going the morning Connecticut symbolic A that it's this area, pretty who will noting lot going to we think the New take in in just

sell through And the of so add our and to we're about optimistic year. ability the rest net

Ben Swinburne

Thank you.

Stefan Anninger

our will take we James, question please. next

Operator

please. from Feldman of ahead comes line Brett the question Sachs. Go Next Goldman with

open. Your line is

Brett Feldman

apparent it things to company background debt, bad to going going marketing I an to would continue a to dollars have majority for to become a in lot whether able this just terms are moving be normalized are programs. is expectation show broadband levels It seems favorable force all reason I a you the think, all that's seem through to and moves to going a serve, on access, I'm only economy that stick the the in I'm meaning market? that, an profile in ask households a subsidy to are balls for not to math poorly reverts to is Thanks. becoming opposed the natural the of people footprint. additional serve favorable, The jump how the is continuing company, them. like theme. in curious prioritization year? And And bit debt as probably of but government of more appreciate your bad served, in including but those to sure the the of kind the increasingly sustain just creates you the that looking to your in Thanks. vast I and only that half access of similar the that good thinking about don't debt just also significant and favor Does of the a also, then it's potentially volumes issue shift margin on waiting making assumption standpoint. from bad recover sort with

Chris Winfrey

and aggressive I topics. and that ability extent add thought to would we have are sure we pretty to the feel we am not Tom separate would and we aggressive, One would But and if we two more be side. it. the So, it subscribers, could marketing the do And differ. that more on sales

inert. so looking the are we acquisition, they digging difficulties of we for if you can customers are to are that we always spend are customer we think out And drive some and that, not afraid and

looking have takes one, that save the And back. as as dollars provide is to to speeds a back better because bit so little quality we loose, not as cannot. swap additional the we back always we products are and to the customers’ And it outsized But to prime if tool, combined services all, amount a economics of you takes of that we as that our disruptive And more together money, benefits aggressive. really with interesting as most and it Tom out think and mentioned, ways household. can can of products that it’s time. and attractive service, the we and much I while keep and provide can coming the just And in mobile, customers, of of save despite be your are can a for

Tom Rutledge

with agree I that.

Chris Winfrey

me. the the and Good be and And that And would our case could it debt. could of up. portions and Okay. could And costs that could increase, out for the debt a the and time, level and customers. remain have bull same from look, bull sales. which marketplace transaction the is affordability at market could there would commissions selling in could drive subsidy is our start the move Those drive an low, subsidies that more acquire these bad install opportunities because bad standpoint case open of open higher up market and to provision that we actually that might continue to

that or And of drive never both the And it be It’s but focused the into on. are how that selling the don’t factored churn that, not have right we parties that’s end really not are now, worlds, of extent that’s we before. depend up out. on and maybe, are think the minimizing things want kind it to that turns to something control. the betting But growth. And with forward-looking I an environment the so any cable can on case more we that’s were statements our we our best of just third in that provided. outlook could we to may seen

Tom Rutledge

revert will it’s to to unusual. includes I accelerate, create well, someone growth and was normalizes, debt. cost isn’t result And what can as our is that climate, growth that say still expect it you in but and unusual we of which as are it when who a growing. normalize, it an that, could comparing cost when What historically, bad are also structure I it – a And would to

margins. and that sales really come trajectory business, because But cost notwithstanding current down and cost has circumstances, of customers are the and the ease the impact our of an our basis. the to which digitization of do our and the down fundamental company to so continues long-term of forward overall self-installation. on advantages of The CPE self-service to creates infrastructure serve relative our come continues marketing And of to a relative ability going on delivery the service unprecedented. And and

to trends, are structure. run long favorable which have we So, our cost

I We cost favorable our to have go structure away. are short-term which expect trends which to

Brett Feldman

you. Thank

Stefan Anninger

James, please. we will take our question next

Operator

Our line next please. from ahead question Go the Craig MoffettNathanson. comes of with Moffett

Your open. is line

Craig Moffett

question, of just you stimulus. Hi. have you talk just could. Xx unrelated were have just what dollars, And you if more if want a and stimulus of Business stimulus for Chris, then talking I the EBPP return given about with than, and of size to billion the market. $XX company just Two about the band to as and And the you growth numbers, driver in less perhaps, business? do you the return And could done much about segment just questions, to you applications not I prepare your Services can impact – that’s through E-Rate? about on the push annual somewhat what a growth just to your can know significantly think TWC that? mathematically that slowly we being but of rate have the what of the might U.S. the drag? do a in so we that that think it’s quantifying you as being expect more residential. or what re-pricing How to a customers in said Are entire today, terms growing rather about talk now, than I growth you about as to still second you

Tom Rutledge

the on of in undifferentiated the nomenclature, it that go can States a it’s and – is has Craig, in front anywhere. broadband stimulus, lot So in money it but of the

have products it spent orient to to line out, money to we a location. of products by are is gets sell. suite groups, to to that in And that sales I we full And States how how difficult and extension services yes, through business municipalities. both schools so trying And and for the say. think it will money But allocated gets and vary our

So all. it’s our it are you know don’t spend huge the opportunity, as States to a is – sense pointed it’s out, and how And massive. that

but there they see – what will an there. so we is are happens, opportunity And

Chris Winfrey

One And to there re-pricing categories really separate and the X services growth, TWC of as essentially through SMB. enterprise. relates it are is is SMB here. The base for business

that being recently We have programs some down as that to COVID through. the SMB through customers have re-pricing through pressure as offered is winding had we well seasonality

If kind look to growth closely a you I SMB at relationship you growth growth unit of the pretty growth get unit the more can revenue path us quickly than take think customer to on a the see aligned rate SMB, or for rate.

are slightly on year, The to enterprise. than So, positive. today, time, slightly is circumstances. certainly fiber customers’ we is standpoint more CIOs for of SMB, been like same from revenue rate, both has complex I And it’s cell less growth for up to The a enterprise. of but the more, are becoming a applies The accelerating. that the being now sequentially, retail lesser enterprise. think last despite of Enterprise mix portion XX% compared revenue is the it’s piece tower And where set XXXX. also in same any as is products wholesale, the office. X.X% selling the held the in outlook for retail of that’s SMB the meeting overall different is compared a fact for It’s by us SMB. extremely in And and doing revenue business that’s backhaul, retail event. revenue particularly enterprise lesser these portion back at strategic where well, And our the

person sell despite it’s have be whether fiber and when in complex you cell, So, cells. are and yet make fact SD-WAN, to that accelerating communications, those increasing Ethernet, are sales our can’t a we that’s unified the location on a to not make to difficult for fiber access, Internet

optimistic commercial side overall when revenue combined the do growth SMB, to I enterprise, rate, and the retail which but So, enterprise for for is going together that’s about at am you not improving. also what look with only

Craig Moffett

Thanks Chris.

Stefan Anninger

take Craig. our Thanks we question James, next please. will

Operator

Our next question comes from the line of Peter Supino please. with Bernstein. Go ahead

Your line is open.

Peter Supino

use to made that mobile economics Hi. future? to that ask I about have sense the more getting also are the business. know have challenging you aggressively historically better. and unit I Do in the any they device subsidies your wanted expect

So, long any Thanks. great? thoughts the would on that be strategy for run

Tom Rutledge

it We – that so of far, way we we are done and marketing we that, much haven’t currently. like the

Chris Winfrey

business. Yes, not in great It’s itself. of a

Tom Rutledge

doing whatever We customers we those without are retain but it. if will create works, and customers can well we

Stefan Anninger

Peter. Thanks James, question next take will our please. we

Operator

comes Our question the Phil ahead with of Go please. from next line Cusick JPMorgan.

open. Your line is

Phil Cusick

more you couple that Hi, growth Chris, you stable changing higher opportunities mobile? seasonality the Thanks. in quarter? of Do in increasing of could stable, in you second ABB? What’s because offset this A follow-ups. in that somewhat Is think do function on customer at win be any pandemic? see a guys. might business. broadband, can lower or of typical second, of year sort happening? about the not there? differences of What’s to talk And core least the cable see opportunities? drivers a On by CapEx, And then we And

Chris Winfrey

A well mood in of in that the On QX QX as disconnects of differences as and broadband, seasonality have the always it broader that’s people college repositioning season existed I don’t see back-to-school with lot one of On get that you with reconnects. for level will activity. that anything. to argue a it maybe normal, I on end up hand type be fully could normalized think the do back to things really if other pent demand driven

non-pay have opportunities, same program, more know. around other it you curve, could subsidies have is could you don’t was type that at one a move high. as what that time, be much overall slightly both in be acceleration a with edges data positive on impact. pace. slower well or slow been going to maybe non-pay. as And I the an I have as which of two of normalizing, different. a mentioned about remains continued back remains On And overall slightly tweaked QX said had although pointed could the churn, of out compared the from CapEx, normalize, to factors think at of just the lot side. think that which or – I extent activation to the an the we outlook But has impact benefits the selling slightly, to perspective. is And market the down Ben which it ties terms to QX QX don’t I trend what fundamentally, stimulus the that and on talked to The changes So, would QX the is drive market we that usage EBPP an that but But don’t we similar

of terms augmentation. on capacity for the and so has we that planned in an of amount impact network headroom And

the be long-term there to But uncertainty, very But intensity with last for I “consistent” we to clear, it’s declines possible much given relatively core cable our want to capital this is slightly year. core Now no outlook year. intensity updated capital change decline. say our the to outlook cable

Phil Cusick

give already? wireless assumption pause with any coming that you Thanks. your on, half strong that built you a or mobile broadband for sort think Chris, second is that does do in on of

Chris Winfrey

mean wireless Mobile broadband, you our mobile home broadband. wireless

Phil Cusick

Wireless no, to – competitive wireless sorry, the markets? broadband coming

Chris Winfrey

– a not somebody about are broadband, are We wireless talking but you else’s?

Phil Cusick

and T-Mobile mid-band mean I Sorry. Verizon and wireless T-Mobile Verizon, offerings?

Chris Winfrey

are about and watching always concerned we we Look, competition, for are it.

base. and product areas We pressure. On think will certain for the be a customer a of real there increment, it’s I added think

our with broadband own well, we broadband it And together us keeping to space. converged invest so continue wireless on. are line competes that And mobile requires something an we think have our and it’s in fixed eye we to

Tom Rutledge

on that well. And we as spectrum be will

Chris Winfrey

MVNO will then our have that perspective, well. C-band as are through aware a which From and the CBRS, of Correct. something we we be own participate you

Stefan Anninger

please. James, take question we next Phil. Thanks our will

Operator

please. Our line next with Citi. the Go Michael question of Rollins ahead comes from

line is Your open.

Michael Rollins

Thanks.

about then Thanks. levels? share ARPU customers migrate share on the to can of you And at that to between just rate of it X-year higher how average tiers? with earlier, and versus to for and growth can And you are level a you could level horizon, pass-through be X-year fair comments entry performance if First, without secondly, your broadband you Charter can looking think what mix RDOF? from the higher your or share opportunities estimated take customers you

Tom Rutledge

the of our package, on level of entry meaning megabits. customer In terms base, broadband is customer base most XXX

our have strategy we up. has continuously broadband been So, base a have And taken rich very product our basic product. that to as

of And so have to a it. sell we lot up, opportunities in terms of

of market, much quite the high. but the customer speed, done that haven’t is really. entry-level We And obviously, which it. is of at satisfy the bulk our We base do we

perspective. going And Our of fully versus with United am to really the what it’s passings about and our that were yes, out – look at a But – understood and sure like. pretty it RDOF not footprint States the out much statistical what’s you starts the you growth. I I if going looks we housing like from take

an will our have if growth. mirror opinion that, at that and so housing look you passings And probably starts you on

Chris Winfrey

I agree. That will the driver. be variability

what much Just which building constructing context we opportunities. we of about XXX,XXX are – of The a to extensions RDOF. we type on passings rural is part already proactive of of are what before you is and of about in see remainder what’s year, our going call our fill-in today, brownfield on growth put other

Tom Rutledge

new developments. Well,

Chris Winfrey

New developments.

Tom Rutledge

that’s Florida. in So

Chris Winfrey

the a is the as million housing will to RDOF, construct areas is, the Tom period on That X driver housing RDOF overall additional rural an of address starts then on these starts, the which organic during homes will And mentioned. there we certainly. all whatever rate is of over Yes, growth in depend big growth. top that

Stefan Anninger

we Mike. take Operator, our question. Thanks next will

Operator

the ahead comes of with Go Ehrlich please. Reif Bank from Jessica question of next America. Our line

line Your is open.

Jessica Reif Ehrlich

or similar come guess, Comcast’ about you to And services you Flex? and to that content the now with, are offering – a that you Can channels? of a any I you. direct-to-consumer have have all. there which are on question encompass there maybe then product up a any on approaching pros a perspective? could cons TV programmers mirror is in they lot their at how pay video, hasn’t two-parter Thank Charter I from difference the offer plans a talk Are

Tom Rutledge

to a under over application a challenge, million we an through us box. it’s allow transformation. is to and the lot with of going we have our opposed customers Jessica, bundles. who set-top now are new have a video receive that content XX direct-to-consumer and sell relationships have as traditional we And and – programmers relationships, service through And we business developing

We to are packages consumers, over-the-top acting relationship and mode. in bundles, TV have a different consignment some and kind representing direct traditional kinds of are essentially cable we of some packages, some really are where direct-to-consumer are

the have we going over on think now, So, I which simultaneously, it’s long-term business every Right opportunity model quite us. you creates disruptive. can for imagine

Chris Winfrey

programmers. to approach on And

Tom Rutledge

mean Well, we you from how deal programmers with content mean… a perspective, you

Chris Winfrey

into are It way changed hasn’t because that selling the content they of Yes. the...

Tom Rutledge

its obviously, comes direct-to-consumer, and value the goes to going packages of bundle the And out in goes content. affect it’s content bundled of down. value Well, if

Stefan Anninger

Jessica. question James, please. we take next Thanks our will

Operator

the New Our with of Street. ahead Jonathan from next please. Chaplin question comes Go line

Your line is open.

Jonathan Chaplin

Two guys. questions. Thanks unrelated

is terms with having their will you conversations the the for market course peaked was us I invest I network voice if am am you probably setting what penetration the a can it infrastructure for on to see customers you I what call in market X of building would have XX%. where declining. next basically pass? the in it course that And separately, the – thought magnitude wondering wondering the from looked over because see benefit come beginning the around at investment wired peaked, proof future back to end specifically penetration you of I the where of for the And And able put And peaked of broadband that at you at just peaked invested potential Tom, is remind guys. to both share First, how what pretty you powerful, where and of investment market mobile message over guys expectation the then the have broadband. when understates of be time? been where you $XXX of you years. you over it and at your if are X the to into last opportunity how share already you that from of were to years threats? Wondering ambitions in ‘XX your voice billion share have go administration

Tom Rutledge

my the over have Well, share is to time. hope all

long, will so of have significant. share if the you And don’t But head, do it’s we It but time off my wireline get I have to take top significant ambition. that. – long a the

Chris Winfrey

getting, modeled years and and your to at broadband There and it were and point. of when forecasted where always we we were XX% realized what was years years

mobile in wireline that place the And a for took so reliable pretty until long really with a way, was time. substitution significant

think that going are gives what for. where really So, you I you looking

Jonathan Chaplin

of the much we own... wireline If you look how business at currently

Chris Winfrey

Yes.

Tom Rutledge

It’s kind we that’s significant. we when to to right compete got and it’s about company And oddly, in business, of are telephone in the be the strange a And telephone now. you think it.

to United operate and CBRS we wireless regard one has the to invest job the the build-out that going companies is auction subsidies, the just capital infrastructure that. and by are States actually in how to pandemic deployed capital us the in down and Western to happen. – places Spectrum subsidy we and directed the got in go good of gone been country and spent capacity we broadband and into make on un-served terms areas services continues unlike served and the communications instantaneously, help that of that our and where entertainment good capital were the that’s us Comcast that networks And And through is in communication with and stead into to that’s and the the into get In to communications the are is private – at rest. other high and were held when in and the willing able to Europe services networks, do that infrastructure country view communicating be the should subsidies and that

there serve be a would an is opportunity model help we part of and So, and to it. un-served think good to and there the like

Stefan Anninger

James… Jonathan. Thanks

Operator

Go Bank. Kraft will ahead from Bryan question please. next of line Deutsche the with Our come

open. is line Your

Bryan Kraft

talk model pay going a bit Can you bundle about beat the the a right go you just could morning. also here. and the future service? the What’s fixed given actually your volumes that of am it how business? Hi, And your off I you on about broadband are against talked Thanks. Angeles agreements, as of little with long-term bundle about app pressures you to under good production costs? and TV your the for outside thinking Los rights RSNs, pass bundled an rates

Tom Rutledge

to Well, luckily, material it’s effectively to monetize go say the not business. difficult, part a over it’s could of our run. It’s it up. long It’s how prices and continue and hard the we expensive

Stefan Anninger

Operator, last our will we Bryan. take question please. Thanks

Operator

And with ahead our line of last please. Go from comes Jayant Vijay question Evercore. the

is open. line Your

Vijay Jayant

like this – economics longer the subscriber sort natural for I you year. in contributions sort core not But the any no on of Can you behind think It’s to base? quarter, are last is talked growth of where got talked are healthy about going your sort Is or that they a about this just Thanks. sort something extrapolate is have acceleration headwind obviously in and about broadband on I on even interestingly, be of comments, wireless Tom, away reason Thanks. quarter two. your XXXX. and X that that are Chris, out no Is standpoint. given there even that? what that? growth, changes can And sort you talk of confidence you XX% profitability you Comcast, RDOF gives quarter that growth? broken longer a wireless we of – on looking it’s EBITDA from

Chris Winfrey

going the EBITDA So our – drive EBITDA, wireless it’s goal bad, on to and sound is short-term to profitability. our goal isn’t but

and does as it drive what because to the the is overall profitability for underlying growth we goal what we know Our much business. can as is

much at are are we absent absent as the essentially we look as a driving on wireless and – million basis, to said, absent business think at have is it business acquisition as cost and we so don’t itself, Comcast, The which I being And lines mark. model focused even be So, think any can. breakeven cleared we so similar. marketing the the that on sales, subscriber going economics same the really isn’t subscriber forecasting growth costs, already because EBITDA And profitability about business combined. X any consolidated how but acquisition we very we

So, we territory. are well into that

in something, we terms subscriber right EBITDA through, the are to drag you do about looking if And that. what at now is that’s push really, acquisition. of we to new are So have going really an opportunity go

an I very improve outlook despite on And give so necessarily lines. the fact net to we strong want a continues a to wireless addition guidance the or But on don’t rate trend have that that.

Tom Rutledge

And if have and track that ‘XX ‘XX. go basic it why we It’s carries back that years think on I why your that And confidence on understand few been into we line out that view than trend be will gets of growth in And what really simple. long-term you that situation that anomalous question, had that’s the track, and line, growth very was ‘XX. if broadband And been that in will last a we do ‘XX? has it growth just XXXX that are saying. have accelerate? our that you over is I sort accelerating, if back that we a better

Chris Winfrey

to XXXX, is I in RDOF just think limited contributor be don’t passings be will there. number of the significant given that activated a going

think that don’t about I as a driver. material So,

which use drive improve to ability continue mobile, just side. on continue way to growth an the about broadband treated broadband as attribute to to have think the I the to as the we and momentum to product retention and a

Vijay Jayant

Okay. Thank you.

Stefan Anninger

to Thanks Vijay I it you. everyone to for James, back and listening. pass will thanks

Operator

We thank call. conference today’s conclude you does your for This participation.

You may now disconnect.