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Tag: Tom Rutledge

  • Q4-2015: Charter reports growth in video customers, revenue up 6.4%

    Q4-2015: Charter reports growth in video customers, revenue up 6.4%

    BENGALURU: Charter Communications, Inc (Charter) reported quarter-on-quarter (QoQ) net addition of 29,000 residential video subscribers for the quarter ended 31 December, 2015 (Q4-2015, current quarter). Last quarter (Q3-2015), the company had added 16,000 residential video subscribers as compared to Q2-2015. As a result, Charter closed the year ended 31 December, 2015 (FY-2015, current year) with 43.22 lakh residential video subscribers, just 2,000 less than the 43.44 lakh residential subscribers that the company had closed Q4-2014 and FY-2014 with.

    As has been reported earlier, both Comcast Communications Inc and Time Warner Cable, Inc had closed the current quarter and year with the best video numbers over eight years and 10 years respectively. It seems that the current quarter has retarded or reversed the video subscriber slide in the US for now. Charter says that 2015 marks the first full year in over a decade in which it grew its total video customers, including 33,000 video net additions in the fourth quarter, and 11,000 for the full year 2015.

    Note: 100,00,000 = 100 lakh = 10 million = 1crore

    Charter reported Q4-2015 revenues of $2,512 million, which grew 6.4 per cent YoY as compared to $2,360 million. Charter reported residential revenue growth of 7.2 per cent YoY ($,2,083 million as compared to $1,943 million) and commercial revenue growth of 12.3 per cent YoY ($294 million as compared to $262 million). Q4-2015 Adjusted EBITDA grew by 7.5 per cent YOY. Excluding transition costs of $22 million for Charter’s pending transactions, fourth quarter Adjusted EBITDA grew by 8.4 per cent YoY. The company reported a higher loss of $122 million in the current quarter as compared to $48 million in Q4-2014.

    FY-2015 revenues increased 7.1 per cent YoY to $9,754 million as compared to $9,108 million. Adjusted EBITDA rose 6.8 per cent YoY to $3,406 million in FY-2015 as compared to $3,190 million. Excluding transition costs for the pending transactions, 2015 Adjusted EBITDA increased 8.5 per cent. Charter’s net loss in FY-2015 increased to $271 million as compared to $83 million in the corresponding year ago quarter.

    Company Speak

    “Our consumer-focused product and service strategy continued to drive Charter’s accelerating customer growth in 2015, including positive video net additions,” said Charter Communications president and CEO Tom Rutledge. “Charter remains the fastest growing cable company in the United States because it provides highly-competitive consumer-friendly products at attractive price points, in simple packages, with quality customer service. We look forward to bringing Charter Spectrum to the Time Warner Cable and Bright House footprints following the close of our transactions, offering consumers better products, prices and service, driving greater growth for our new company and our business partners, and creating value for shareholders.”

    Customer relationships and performance

    Charter reported 4.9 per cent YoY growth in residential customer relationships in Q4-2015 at 62.84 lakh as compared to 59.90 lakh and increased 1.3 per cent QoQ as compared to 62.02 lakh. Small and medium business customer relationships increased 17.5 per cent YoY in Q4-2015 to 3.9 lakh from 3.32 lakh and increased four per cent from 3.75 lakh in the immediate trailing quarter. Total customer relationships increased in the current quarter 5.6 per cent YoY to 66.74 lakh from 63.22 lakh and increased 1.5 per cent from 65.77 lakh in the previous quarter.

    Combined video, internet and voice (VIVE) revenue in the current quarter grew 7.2 per cent YoY at $2,083 million as compared to $1,983 million and increased 2.1 per cent QoQ as compared to $2,040 million.

    Average revenue per residential customer (ARPU) in Q4-2015 increased by $0.50 to $111.19 from $110.69 in Q3-2015. In Q4-2014, Charter reported residential ARPU of $108.67.

    Video

    Video subscription numbers have been mentioned above. Video revenue in Q4-2015 grew 2.9 per cent YoY to $1,167 million as compared to $1,134 million and increased 2.1 per cent QoQ as compared to $1,143 million. Charter’s non-video residential customer relationships increased to 31.2 per cent as compared to 27.8 per cent in Q4-2014 and 30.8 per cent in Q3-2015.

    Internet

    Internet subscription numbers in the current quarter increased 9.2 per cent YoY to 51.12 million from 47.85 lakh and increased 0.7 per cent QoQ from 42.93 million. Internet revenue in the current quarter increased 16.6 per cent YoY to $781 million from $670 million and increased 2.5 per cent QoQ from $762 million.

    Voice

    Voice subscription numbers in the current quarter increased 6.5 per cent YoY to 25.98 lakh from 24.39 lakh and increased 1.8 per cent QoQ from25.51 lakh. Voice revenue reduced 2.9 per cent YoY to $135 million from $135 million and was flat QoQ at $135 million.

    Residential Multiplay

    Residential single play subscribers increased 4.6 per cent YOY to 24.58 lakh from 23.50 lakh and increased 0.5 per cent from 24.45 lakh. Residential double play subscribers increased 3.9 per cent YoY to 17.90 lakh from 17.22 lakh and increased 1.7 per cent from 17.60 lakh. Residential triple play subscribers in Q3-2015 increased 6.2 per cent YoY to 20.36 lakh from 19.18 lakh and increased two per cent QoQ from 19.97 lakh.

  • Q4-2015: Charter reports growth in video customers, revenue up 6.4%

    Q4-2015: Charter reports growth in video customers, revenue up 6.4%

    BENGALURU: Charter Communications, Inc (Charter) reported quarter-on-quarter (QoQ) net addition of 29,000 residential video subscribers for the quarter ended 31 December, 2015 (Q4-2015, current quarter). Last quarter (Q3-2015), the company had added 16,000 residential video subscribers as compared to Q2-2015. As a result, Charter closed the year ended 31 December, 2015 (FY-2015, current year) with 43.22 lakh residential video subscribers, just 2,000 less than the 43.44 lakh residential subscribers that the company had closed Q4-2014 and FY-2014 with.

    As has been reported earlier, both Comcast Communications Inc and Time Warner Cable, Inc had closed the current quarter and year with the best video numbers over eight years and 10 years respectively. It seems that the current quarter has retarded or reversed the video subscriber slide in the US for now. Charter says that 2015 marks the first full year in over a decade in which it grew its total video customers, including 33,000 video net additions in the fourth quarter, and 11,000 for the full year 2015.

    Note: 100,00,000 = 100 lakh = 10 million = 1crore

    Charter reported Q4-2015 revenues of $2,512 million, which grew 6.4 per cent YoY as compared to $2,360 million. Charter reported residential revenue growth of 7.2 per cent YoY ($,2,083 million as compared to $1,943 million) and commercial revenue growth of 12.3 per cent YoY ($294 million as compared to $262 million). Q4-2015 Adjusted EBITDA grew by 7.5 per cent YOY. Excluding transition costs of $22 million for Charter’s pending transactions, fourth quarter Adjusted EBITDA grew by 8.4 per cent YoY. The company reported a higher loss of $122 million in the current quarter as compared to $48 million in Q4-2014.

    FY-2015 revenues increased 7.1 per cent YoY to $9,754 million as compared to $9,108 million. Adjusted EBITDA rose 6.8 per cent YoY to $3,406 million in FY-2015 as compared to $3,190 million. Excluding transition costs for the pending transactions, 2015 Adjusted EBITDA increased 8.5 per cent. Charter’s net loss in FY-2015 increased to $271 million as compared to $83 million in the corresponding year ago quarter.

    Company Speak

    “Our consumer-focused product and service strategy continued to drive Charter’s accelerating customer growth in 2015, including positive video net additions,” said Charter Communications president and CEO Tom Rutledge. “Charter remains the fastest growing cable company in the United States because it provides highly-competitive consumer-friendly products at attractive price points, in simple packages, with quality customer service. We look forward to bringing Charter Spectrum to the Time Warner Cable and Bright House footprints following the close of our transactions, offering consumers better products, prices and service, driving greater growth for our new company and our business partners, and creating value for shareholders.”

    Customer relationships and performance

    Charter reported 4.9 per cent YoY growth in residential customer relationships in Q4-2015 at 62.84 lakh as compared to 59.90 lakh and increased 1.3 per cent QoQ as compared to 62.02 lakh. Small and medium business customer relationships increased 17.5 per cent YoY in Q4-2015 to 3.9 lakh from 3.32 lakh and increased four per cent from 3.75 lakh in the immediate trailing quarter. Total customer relationships increased in the current quarter 5.6 per cent YoY to 66.74 lakh from 63.22 lakh and increased 1.5 per cent from 65.77 lakh in the previous quarter.

    Combined video, internet and voice (VIVE) revenue in the current quarter grew 7.2 per cent YoY at $2,083 million as compared to $1,983 million and increased 2.1 per cent QoQ as compared to $2,040 million.

    Average revenue per residential customer (ARPU) in Q4-2015 increased by $0.50 to $111.19 from $110.69 in Q3-2015. In Q4-2014, Charter reported residential ARPU of $108.67.

    Video

    Video subscription numbers have been mentioned above. Video revenue in Q4-2015 grew 2.9 per cent YoY to $1,167 million as compared to $1,134 million and increased 2.1 per cent QoQ as compared to $1,143 million. Charter’s non-video residential customer relationships increased to 31.2 per cent as compared to 27.8 per cent in Q4-2014 and 30.8 per cent in Q3-2015.

    Internet

    Internet subscription numbers in the current quarter increased 9.2 per cent YoY to 51.12 million from 47.85 lakh and increased 0.7 per cent QoQ from 42.93 million. Internet revenue in the current quarter increased 16.6 per cent YoY to $781 million from $670 million and increased 2.5 per cent QoQ from $762 million.

    Voice

    Voice subscription numbers in the current quarter increased 6.5 per cent YoY to 25.98 lakh from 24.39 lakh and increased 1.8 per cent QoQ from25.51 lakh. Voice revenue reduced 2.9 per cent YoY to $135 million from $135 million and was flat QoQ at $135 million.

    Residential Multiplay

    Residential single play subscribers increased 4.6 per cent YOY to 24.58 lakh from 23.50 lakh and increased 0.5 per cent from 24.45 lakh. Residential double play subscribers increased 3.9 per cent YoY to 17.90 lakh from 17.22 lakh and increased 1.7 per cent from 17.60 lakh. Residential triple play subscribers in Q3-2015 increased 6.2 per cent YoY to 20.36 lakh from 19.18 lakh and increased two per cent QoQ from 19.97 lakh.

  • Charter’s acquisition bid values Time Warner Cable at $78.7 billion

    Charter’s acquisition bid values Time Warner Cable at $78.7 billion

    MUMBAI: After much speculation, Charter Communications has agreed to acquire Time Warner Cable Inc for a sum of $78.7 billion in cash and stock.

     

    With this, Time Warner Cable will now merge with Charter to merge with Time Warner Cable. Charter will provide $100 in cash and shares of a new public parent company (“New Charter”) equivalent to 0.5409 shares of CHTR for each Time Warner Cable share outstanding.

     

    The deal values each Time Warner Cable share at approximately $195.71 based on Charter’s market closing price on 20 May, or approximately $200 based on Charter’s 60-trading day volume weighted average price.

     

    In addition, Charter will provide an election option for each Time Warner Cable stockholder, other than Liberty Broadband Corporation or Liberty Interactive Corporation, who will receive all stock, to receive $115 of cash and New Charter shares equivalent to 0.4562 shares of CHTR for each Time Warner Cable share they own.

     

    Charter and Advance/Newhouse Partnership (a parent of Bright House Networks, LLC) have also amended the agreement, which the two parties signed and announced on 31 March, 2015, whereby Charter will acquire Bright House Networks for $10.4 billion. That agreement, as amended, provides for Charter and Advance/Newhouse to form a new partnership of which New Charter will own between approximately 86 per cent and 87 per cent and of which Advance/Newhouse will own between approximately 13 per cent and 14 per cent, depending on the Time Warner Cable shareholders’ cash election option described above. The consideration to be paid to Advance/Newhouse by Charter will include common and convertible preferred units in the partnership, in addition to $2 billion in cash. The common and convertible preferred partnership units will each be exchangeable into shares of New Charter. The Charter-Advance/Newhouse transaction is expected to close contemporaneously with the Charter-Time Warner Cable transaction.

     

    Moreover, Liberty Broadband Corporation has agreed to purchase, upon closing of the Time Warner Cable transaction, $4.3 billion of newly issued shares of New Charter at a price equivalent to $176.95 per Charter share, which represents Charter’s closing price as of 20 May, 2015. As previously-announced, Liberty Broadband will also purchase, upon closing of the Charter-Advance/Newhouse transaction, $700 million of newly issued Charter shares at a price equivalent to $173.00 per Charter share.

     

    Following the close of both the Charter-Time Warner Cable and the Charter-Advance/Newhouse transactions, and depending on the outcome of the cash election feature offered in the Charter-Time Warner Cable transaction, Time Warner Cable shareholders, excluding Liberty Broadband and its affiliates, are expected to own between approximately 40 per cent and 44 per cent of New Charter, and Advance/Newhouse is expected to own between approximately 13 per cent and 14 per cent of New Charter. Liberty Broadband is expected to own between approximately 19 per cent and 20 per cent of New Charter.

     

    The combination of Charter, Time Warner Cable and Bright House will create a broadband services and technology company serving 23.9 million customers in 41 states. The transactions will drive investment into the combined entity’s advanced broadband network, allow for wider deployment of new competitive facilities based WiFi networks in public places, and the footprint expansion of optical networks to serve the large marketplace of small and medium sized businesses.  This will result in faster broadband speeds, better video products, including more high definition channels, more affordable phone service and more competition, for consumers and businesses.

     

    The scale of the new entity will also result in greater product innovation, bringing new and advanced services to consumers and businesses, including Charter’s Spectrum Guide and World Box and other product innovations. And Charter’s commitment to superior products and outstanding customer service, and its strategy of investing in insourcing and returning offshore jobs to America, will not only benefit the combined companies’ customers, but will also enhance opportunities for employees of the new company.

     

    “The teams at Charter, Time Warner Cable and Bright House Networks are filled with the innovators of our industry. Representatives of each of these companies have invented some of the most revolutionary communications products ever created; innovations like video on demand, VOIP phone service, remote storage DVR, cable TV through an app, downloadable security and the first backward-compatible, cloud-based user interface. That spirit of innovation will live on, and it will create real benefits and great long-term value for the customers, shareholders and employees of all three companies. With our larger reach, we will be able to accelerate the deployment of faster Internet speeds, state-of-the-art video experiences, and fully–featured voice products, at highly competitive prices. In addition, we will drive greater competition through further deployment of new competitive facilities-based WiFi networks in public places, and the expansion of the facilities footprint of optical networks to serve the large, small and medium sized business services marketplace. New Charter will capitalize on technology to create and maintain a more effective and efficient service model. Put simply, the scale of New Charter, along with the combined talents we can bring to bear, position us to deliver a communications future that will unleash the full power of the two-way, interactive cable network,” said Charter Communications president and CEO Tom Rutledge.

     

    “With today’s announcement, we have delivered on our commitment to maximizing shareholder value. This agreement recognizes the unique value of Time Warner Cable, and brings together three great companies that share a common philosophy of strong operations, great products, robust network investment and putting customers first. This combination will only accelerate the great operating momentum we’ve seen over the last year and provide enormous opportunities for our 55,000 dedicated employees. We remain wholly committed to bringing the very best experience to our residential and business customers coast to coast,” said Time Warner Cable chairman and CEO Robert D. Marcus.

     

    “Today’s announcement is good news for customers and potential customers, as well as our employees, since we will be in a stronger position to deliver competitive services, invest in advanced technology, and develop innovative products that will compete with global and national brands. In addition, I am very pleased that Tom Rutledge will be the CEO of the new company. Tom recognizes the importance of placing a high priority focus on customer care drawing from the expertise of all three companies, and I believe this will be a strong pillar of the new company’s culture,” added Bright House Networks CEO Steve Miron.

     

    Tom Rutledge will serve as president and CEO of New Charter. Additionally, Rutledge will be offered a new five-year employment agreement. At the close of the transactions, New Charter’s Board of Directors will consist of 13 directors including Rutledge, who will be offered the position of chairman. The remaining 12 directors will include seven independent directors nominated by the independent directors serving on Charter’s Board of Directors, two directors designated by Advance/Newhouse, and three directors designated by Liberty Broadband. Charter’s current chairman since 2009, Eric Zinterhofer, will continue to serve on New Charter’s Board.

     

    Pursuant to the agreement between Charter and Advance/Newhouse, Charter and Advance/Newhouse will form the partnership utilizing an existing subsidiary of Charter Communications Holding Company, LLC, a subsidiary of Charter. New Charter, which will include Time Warner Cable, will contribute substantially all of its assets into the partnership, and Advance/Newhouse will contribute all of Bright House’s assets into the partnership. In exchange for its contribution, Advance/Newhouse will receive $5.9 billion of exchangeable common partnership units, and $2.5 billion of convertible preferred partnership units, which will pay a six per cent coupon. The common and convertible preferred partnership units will each be exchangeable into New Charter Class A common stock, with 34.3 million common units priced at $173.00 (the “Reference Price”) per share, as previously announced. The 10.3 million preferred partnership units will be convertible at $242.19, a 40 per cent premium to the Reference Price. Advance/Newhouse will also receive $2 billion in cash and will receive governance rights reflecting its economic ownership in the partnership through a new class of shares at New Charter.

     

    Upon closing of the Charter-Advance/Newhouse transaction, a new shareholder’s agreement with Advance/Newhouse and Liberty Broadband will become effective. Under the new agreement, Advance/Newhouse and Liberty Broadband will be granted preemptive rights, allowing each to maintain their pro rata ownership in New Charter. The shareholder’s agreement also provides for voting caps and required participation in buybacks at specified acquisition caps, and stipulates transfer restrictions among other shareholder governance matters. In connection with the Charter-Advance/Newhouse transaction as amended, Advance/Newhouse has agreed to grant Liberty Broadband a voting proxy on its shares, capped at seven per cent, for the five years following the close of the transaction, such that Liberty Broadband would have total voting power of approximately 25 per cent at closing. The proxy excludes votes on certain matters.

     

    The Charter-Advance/Newhouse transaction is subject to several conditions, including the completion of the Time Warner Cable acquisition (subject to certain exceptions if Time Warner Cable enters into another sale transaction) and a separate vote on the Liberty transactions, and regulatory approval. The three companies expect to close the announced transactions by the end of 2015.

  • Close Charter launches TV streaming app

    Close Charter launches TV streaming app

    MUMBAI: Charter Communications launched its first mobile TV streaming app on Tuesday, offering a lineup of more than 100 live TV channels in the home, though the plan is to eventually allow authenticated customers to access live TV streams while they are on the go as well, Charter CEO Tom Rutledge said during Charter’s third quarter earnings call.

    Rutledge said the MSO anticipates that the new Charter TV app, offered first on Apple devices and coming later to the Android platform, will eventually add video-on-demand content to the mix and offer out-of-home access.

    Rutledge said: “Charter’s TV app is the beginning of a lot of things. It may ultimately be monetisable in ways that are different than we currently envision it.”

     “We may sell download-to-go services. We may sell video-on-demand everywhere. We may sell subscriptions everywhere,” he said. “But right now our primary business and our primary objective is to enhance our service offering and to make the total value of what we sell more valuable to the consumer.”

    Rutledge, who was a champion of Wi-Fi at Cablevision Systems, said Charter is drawing up a Wi-Fi plan of its own.

    “We think that Wi-Fi makes sense,” Rutledge said, noting that the MSO intends to start off by using dual SSIDs in Wi-Fi gear installed at commercial customer locations.

    “We want to start putting it out in our commercial customer base next year…While we don’t have a complete rollout plan yet, we’re working on beginning to deploy Wi-Fi at Charter,” Rutledge said.

    He did not mention if Charter has any plans to join the “Cable WiFi” roaming initiative that counts five members – Comcast, Bright House Networks, Time Warner Cable, Cablevision and Cox Communications – that have collectively deployed more than 200,000 Wi-Fi hot spots, with more than 500,000 on the horizon.

  • Charter launches TV streaming app

    Charter launches TV streaming app

    MUMBAI: Charter Communications launched its first mobile TV streaming app on Tuesday, offering a lineup of more than 100 live TV channels in the home, though the plan is to eventually allow authenticated customers to access live TV streams while they are on the go as well, Charter CEO Tom Rutledge said during Charter’s third quarter earnings call.

    Rutledge said the MSO anticipates that the new Charter TV app, offered first on Apple devices and coming later to the Android platform, will eventually add video-on-demand content to the mix and offer out-of-home access.

    Rutledge said: “Charter’s TV app is the beginning of a lot of things. It may ultimately be monetisable in ways that are different than we currently envision it.”

     “We may sell download-to-go services. We may sell video-on-demand everywhere. We may sell subscriptions everywhere,” he said. “But right now our primary business and our primary objective is to enhance our service offering and to make the total value of what we sell more valuable to the consumer.”

    Rutledge, who was a champion of Wi-Fi at Cablevision Systems, said Charter is drawing up a Wi-Fi plan of its own.

    “We think that Wi-Fi makes sense,” Rutledge said, noting that the MSO intends to start off by using dual SSIDs in Wi-Fi gear installed at commercial customer locations.
    “We want to start putting it out in our commercial customer base next year…While we don’t have a complete rollout plan yet, we’re working on beginning to deploy Wi-Fi at Charter,” Rutledge said.

    He did not mention if Charter has any plans to join the “Cable WiFi” roaming initiative that counts five members – Comcast, Bright House Networks, Time Warner Cable, Cablevision and Cox Communications – that have collectively deployed more than 200,000 Wi-Fi hot spots, with more than 500,000 on the horizon.