Charter Announces Second Quarter 2019 Results

STAMFORD, Conn., July 26, 2019

Key highlights:

• Second quarter total residential and SMB customer relationships increased 203,000, compared to 196,000 during the second quarter of 2018. As of June 30, 2019, Charter had 28.7 million total customer relationships, with growth of over 1.0 million year-over-year.
• During the second quarter, Charter generated residential and SMB Internet net additions of 258,000, video net losses of 141,000 and wireline voice net losses of 182,000.
• Charter added 208,000 mobile lines in the second quarter, compared to 176,000 mobile line net additions in the first quarter of 2019. Late in the second quarter, our Bring Your Own Device (BYOD) program was expanded to all sales channels. As of June 30, 2019, Charter served a total of 518,000 mobile lines.
• Second quarter revenues of $11.3 billion grew 4.5%, as compared to the prior year period, driven by residential revenue growth of 3.7%, commercial revenue growth of 4.7% and mobile revenue of $158 million.
• Second quarter Adjusted EBITDA¹ of $4.2 billion grew 3.3% year-over-year, while second quarter cable Adjusted EBITDA¹ of $4.3 billion grew 5.4% year-over-year.
• Net income attributable to Charter shareholders totaled $314 million in the second quarter, compared to $273 million during the same period last year. The year-over-year increase in net income attributable to Charter shareholders in the second quarter was primarily driven by higher Adjusted EBITDA.
• Second quarter capital expenditures totaled $1.6 billion compared to $2.4 billion during the second quarter of 2018. Second quarter capital expenditures included $93 million of mobile-related capital expenditures.
• Consolidated free cash flow¹ for the second quarter of 2019 totaled $1.1 billion, compared to $804 million during the same period last year. Cable free cash flow¹ for the second quarter totaled $1.4 billion, compared to $920 million during the same period last year.
• During the second quarter, Charter purchased approximately 2.7 million shares of Charter Class A common stock and Charter Communications Holdings, LLC ("Charter Holdings") common units for approximately $998 million.

"We are realizing the benefits of consolidating three large cable operators under one centralized operating strategy, with lower customer churn, fewer service transactions per customer and improving customer satisfaction resulting in growth of over 1 million customer relationships year-over-year," said Tom Rutledge, Chairman and CEO of Charter Communications. "In the second quarter, free cash flow grew nearly 40% year-over-year. Our core business is strong and we are positioned to be the network of choice today and in the future."

Key Operating Results