Charter Communications : 3Q20 Trending Schedule

Charter Communications, Inc. Customer Metrics

(in thousands except ARPU and penetration, unaudited)

						2018												2019										2020
		1Q		2Q		3Q			4Q		FY			1Q		2Q		3Q			4Q		FY			1Q		2Q		3Q
Footprint (a)
Estimated Passings		50,526		50,725		50,977			51,185		51,185			51,384		51,619		51,940			52,154		52,154			52,418		52,714		53,022
Customer Relationships (b)
Residential		25,730		25,871		26,063			26,270		26,270			26,591		26,755		27,037			27,277		27,277			27,745		28,496		28,912
Small and Medium Business ("SMB")		1,695		1,750		1,792			1,833		1,833			1,863		1,902		1,930			1,958		1,958			1,976		1,980		2,021
Total Customer Relationships		27,425		27,621		27,855			28,103		28,103			28,454		28,657		28,967			29,235		29,235			29,721		30,476		30,933
Residential		231		141		192			207		771			321		164		282			240		1,007			468		751		416
SMB		33		55		42			41		171			30		39		28			28		125			18		4		41
Total Customer Relationships Net Additions		264		196		234			248		942			351		203		310			268		1,132			486		755		457
Total Customer Relationship Penetration of Estimated Passings (c)		54.3%		54.5%		54.6%			54.9%		54.9%			55.4%		55.5%		55.8%			56.1%		56.1%			56.7%		57.8%		58.3%
Monthly Residential Revenue per Residential Customer (d)	$	111.41	$	111.88	$	111.13	$	111.78	$	111.56	$	112.47	$	112.20	$	112.00	$	113.79	$	112.63	$	112.73	$	110.82	$	109.03
Monthly SMB Revenue per SMB Customer (e)	$	178.84	$	176.96	$	173.52	$	170.62	$	174.88	$	170.64	$	170.42	$	169.44	$	169.06	$	169.90	$	168.83	$	166.06	$	164.77
Residential Customer Relationships Penetration
Single Play Penetration (f)		41.1%		41.3%		41.7%			41.6%		41.6%			42.1%		42.4%		42.7%			43.0%		43.0%			43.6%		44.0%		44.2%
Double Play Penetration (f)		25.4%		25.6%		26.1%			27.0%		27.0%			27.9%		28.8%		29.9%			30.7%		30.7%			31.2%		31.7%		32.3%
Triple Play Penetration (f)		33.5%		33.0%		32.3%			31.4%		31.4%			30.0%		28.8%		27.3%			26.2%		26.2%			25.2%		24.3%		23.5%
% Residential Non-Video Customer Relationships		36.7%		37.4%		38.1%			38.7%		38.7%			40.0%		40.9%		41.8%			42.7%		42.7%			44.0%		45.1%		45.7%
Internet
Residential		22,852		23,070		23,336			23,625		23,625			24,023		24,244		24,595			24,908		24,908			25,471		26,313		26,807
SMB		1,503		1,552		1,594			1,634		1,634			1,664		1,701		1,730			1,756		1,756			1,775		1,783		1,826
Total Internet Customers		24,355		24,622		24,930			25,259		25,259			25,687		25,945		26,325			26,664		26,664			27,246		28,096		28,633
Residential		334		218		266			289		1,107			398		221		351			313		1,283			563		842		494
SMB		33		49		42			40		164			30		37		29			26		122			19		8		43
Total Internet Net Additions		367		267		308			329		1,271			428		258		380			339		1,405			582		850		537
Video
Residential		16,279		16,206		16,140			16,104		16,104			15,952		15,802		15,725			15,620		15,620			15,550		15,652		15,705
SMB		460		476		488			502		502			509		518		520			524		524			524		516		530
Total Video Customers		16,739		16,682		16,628			16,606		16,606			16,461		16,320		16,245			16,144		16,144			16,074		16,168		16,235
Residential		(121)		(73)		(66)			(36)		(296)			(152)		(150)		(77)			(105)		(484)			(70)		102		53
SMB		10		16		12			14		52			7		9		2			4		22			-		(8)		14
Total Video Net Additions (Losses)		(111)		(57)		(54)			(22)		(244)			(145)		(141)		(75)			(101)		(462)			(70)		94		67
Voice
Residential		10,370		10,325		10,218			10,135		10,135			10,015		9,808		9,595			9,443		9,443			9,360		9,398		9,335
SMB		957		994		1,024			1,051		1,051			1,072		1,097		1,120			1,144		1,144			1,162		1,169		1,207
Total Voice Customers		11,327		11,319		11,242			11,186		11,186			11,087		10,905		10,715			10,587		10,587			10,522		10,567		10,542
Residential		(54)		(45)		(107)			(83)		(289)			(120)		(207)		(213)			(152)		(692)			(83)		38		(63)
SMB		27		37		30			27		121			21		25		23			24		93			18		7		38
Total Voice Net Additions (Losses)		(27)		(8)		(77)			(56)		(168)			(99)		(182)		(190)			(128)		(599)			(65)		45		(25)
Mobile Lines
Residential		-		-		21			134		134			310		518		793			1,078		1,078			1,359		1,672		2,020
SMB		-		-		-			-		-			-		-		1			4		4			13		25		40
Total Mobile Lines		-		-		21			134		134			310		518		794			1,082		1,082			1,372		1,697		2,060
Residential		-		-		21			113		134			176		208		275			285		944			281		313		348
SMB		-		-		-			-		-			-		-		1			3		4			9		12		15
Total Mobile Lines Net Additions		-		-		21			113		134			176		208		276			288		948			290		325		363
Enterprise (g)
Enterprise Primary Service Units ("PSUs")		228		235		243			248		248			253		258		264			267		267			269		270		272
Enterprise Net Additions		8		7		8			5		28			5		5		6			3		19			2		1		2

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

Charter Communications, Inc.

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

						2018												2019									2020
		1Q		2Q		3Q		4Q		FY				1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q
Revenue
Internet	$	3,707	$	3,770	$	3,809	$	3,895	$	15,181	$	4,024	$	4,103	$	4,195	$	4,345	$	16,667	$	4,407	$	4,530	$	4,722
Video		4,292		4,363		4,332		4,361		17,348				4,384		4,391		4,359		4,473		17,607			4,422		4,371		4,221
Voice		556		531		512		515		2,114				504		489		477		450		1,920			457		451		449
Residential Revenue		8,555		8,664		8,653		8,771		34,643				8,912		8,983		9,031		9,268		36,194			9,286		9,352		9,392
Small and Medium Business		900		915		922		928		3,665				945		963		974		986		3,868			996		983		988
Enterprise		622		627		632		647		2,528				643		652		644		617		2,556			622		606		617
Commercial Revenue		1,522		1,542		1,554		1,575		6,193				1,588		1,615		1,618		1,603		6,424			1,618		1,589		1,605
Advertising Sales		356		427		440		562		1,785				345		395		394		434		1,568			365		249		460
Mobile		-		-		17		89		106				140		158		192		236		726			258		310		368
Other		224		221		228		234		907				221		196		215		220		852			211		196		214
Total Revenue	$	10,657	$	10,854	$	10,892	$	11,231	$	43,634	$	11,206	$	11,347	$	11,450	$	11,761	$	45,764	$	11,738	$	11,696	$	12,039
Y/Y Growth		4.9%		4.8%		4.2%		5.9%		4.9%				5.1%		4.5%		5.1%		4.7%		4.9%			4.8%		3.1%		5.1%
Costs and Expenses
Programming	$	2,752	$	2,803	$	2,778	$	2,791	$	11,124	$	2,865	$	2,827	$	2,790	$	2,808	$	11,290	$	2,892	$	2,873	$	2,727
Regulatory, Connectivity and Produced Content		533		560		546		571		2,210				561		597		612		596		2,366			551		488		612
Costs to Service Customers		1,854		1,784		1,854		1,835		7,327				1,822		1,767		1,894		1,794		7,277			1,848		1,848		1,902
Marketing		751		769		790		732		3,042				735		768		793		748		3,044			766		719		788
Mobile		8		33		94		211		346				260		277		337		372		1,246			374		413		456
Other Expense		866		854		879		927		3,526				908		926		938		914		3,686			911		866		915
Total Operating Costs and Expenses	$	6,764	$	6,803	$	6,941	$	7,067	$	27,575	$	7,151	$	7,162	$	7,364	$	7,232	$	28,909	$	7,342	$	7,207	$	7,400
Adjusted EBITDA (h)
Adjusted EBITDA (h)	$	3,893		$4,051		$3,951		$4,164		$16,059				$4,055		$4,185		$4,086		$4,529		$16,855			$4,396		$4,489		$4,639
Y/Y Growth		6.5%		5.3%		3.5%		4.6%		5.0%				4.2%		3.3%		3.4%		8.8%		5.0%			8.4%		7.3%		13.6%
Adjusted EBITDA Margin (h)		36.5%		37.3%		36.3%		37.1%		36.8%				36.2%		36.9%		35.7%		38.5%		36.8%			37.4%		38.4%		38.5%
Cable Adjusted EBITDA (h)	$	3,901	$	4,084	$	4,028	$	4,286	$	16,299	$	4,175	$	4,304	$	4,231	$	4,665	$	17,375	$	4,512	$	4,592	$	4,727
Cable Y/Y Growth		6.8%		6.2%		5.5%		7.6%		6.5%				7.0%		5.4%		5.0%		8.9%		6.6%			8.1%		6.7%		11.7%
Cable Adjusted EBITDA Margin (h)		36.6%		37.6%		37.0%		38.5%		37.4%				37.7%		38.5%		37.6%		40.5%		38.6%			39.3%		40.3%		40.5%

Adjusted EBITDA(h) and cable Adjusted EBITDA(h) are non-GAAP terms. See page 4 for the reconciliation of Adjusted EBITDA(h) and cable Adjusted EBITDA(h) 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)

						2018												2019									2020
		1Q		2Q		3Q		4Q		FY				1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q
Capital Expenditures
Customer premise equipment (i)	$	934	$	828	$	675	$	687	$	3,124	$	565	$	492	$	470	$	543	$	2,070	$	463	$	518	$	520
Scalable infrastructure (j)		486		587		505		649		2,227				297		223		320		599		1,439			170		385		424
Line extensions (k)		291		353		348		381		1,373				321		363		370		390		1,444			343		422		439
Success Based		1,711		1,768		1,528		1,717		6,724				1,183		1,078		1,160		1,532		4,953			976		1,325		1,383
Upgrade/Rebuild (l)		142		190		190		182		704				131		155		165		183		634			129		155		175
Support capital (m)		330		433		400		534		1,697				351		364		326		567		1,608			356		397		456
Total capital expenditures		2,183		2,391		2,118		2,433		9,125				1,665		1,597		1,651		2,282		7,195			1,461		1,877		2,014
Less: Mobile capital expenditures		(17)		(53)		(66)		(106)		(242)				(88)		(93)		(100)		(151)		(432)			(87)		(125)		(139)
Cable capital expenditures	$	2,166	$	2,338	$	2,052	$	2,327	$	8,883	$	1,577	$	1,504	$	1,551	$	2,131	$	6,763	$	1,374	$	1,752	$	1,875
Capital expenditures included in total related to:
Commercial services	$	283	$	309	$	342	$	379	$	1,313	$	305	$	324	$	327	$	358	$	1,314	$	261	$	323	$	358
All-digital transition	$	186	$	88	$	42	$	28	$	344	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

See footnotes on page 5.

3

Charter Communications, Inc.

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

						2018												2019									2020
		1Q		2Q		3Q		4Q		FY				1Q		2Q		3Q		4Q		FY			1Q		2Q		3Q
Reconciliation
Net income attributable to Charter shareholders	$	168	$	273	$	493	$	296	$	1,230	$	253	$	314	$	387	$	714	$	1,668	$	396	$	766	$	814
Plus:
Net income attributable to noncontrolling interest		55		66		91		64		276				64		72		80		108		324			71		110		118
Interest expense, net		851		878		901		910		3,540				925		945		963		964		3,797			980		957		946
Income tax expense		28		41		109		2		180				119		84		126		110		439			29		166		177
Depreciation and amortization		2,710		2,592		2,482		2,534		10,318				2,550		2,500		2,415		2,461		9,926			2,497		2,428		2,370
Stock compensation expense		72		70		71		72		285				85		82		71		77		315			90		90		83
Loss on extinguishment of debt		-		-		-		-		-				-		-		-		25		25			27		36		58
Gain (loss) on financial instruments, net		(63)		75		(12)		110		110				(37)		119		34		(62)		54			318		(64)		(69)
Other pension (benefits) costs, net		(20)		(20)		(207)		55		(192)				(9)		(9)		(9)		96		69			(10)		(11)		115
Other, net		92		76		23		121		312				105		78		19		36		238			(2)		11		27
Adjusted EBITDA (h)		3,893		4,051		3,951		4,164		16,059				4,055		4,185		4,086		4,529		16,855			4,396		4,489		4,639
Less: Mobile revenue		-		-		(17)		(89)		(106)				(140)		(158)		(192)		(236)		(726)			(258)		(310)		(368)
Plus: Mobile costs and expenses		8		33		94		211		346				260		277		337		372		1,246			374		413		456
Cable Adjusted EBITDA (h)	$	3,901	$	4,084	$	4,028	$	4,286	$	16,299	$	4,175	$	4,304	$	4,231	$	4,665	$	17,375	$	4,512	$	4,592	$	4,727
Net cash flows from operating activities	$	2,699	$	3,096	$	2,804	$	3,168	$	11,767		$	2,686	$	2,761	$	2,943	$	3,358	$	11,748		$	3,220	$	3,529	$	3,664
Less:
Purchases of property, plant and equipment		(2,183)		(2,391)		(2,118)		(2,433)		(9,125)				(1,665)		(1,597)		(1,651)		(2,282)		(7,195)			(1,461)		(1,877)		(2,014)
Change in accrued expenses related to capital expenditures		(565)		99		(154)		150		(470)				(376)		(52)		(21)		504		55			(388)		214		104
Free cash flow (h)		(49)		804		532		885		2,172				645		1,112		1,271		1,580		4,608			1,371		1,866		1,754
Plus:
Mobile net cash outflows from operating activities		8		63		83		198		352				203		204		156		166		729			173		108		126
Purchases of mobile property, plant and equipment		17		53		66		106		242				88		93		100		151		432			87		125		139
Cable free cash flow (h)	$	(24)	$	920	$	681	$	1,189	$	2,766	$	936	$	1,409	$	1,527	$	1,897	$	5,769	$	1,631	$	2,099	$	2,019

See page 2 for detail of the components included within Adjusted EBITDA (h) and cable Adjusted EBITDA (h).

The above schedule is presented in order to reconcile Adjusted EBITDA (h), cable Adjusted EBITDA (h), free cash flow (h) and cable free cash flow (h), 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. At September 30, 2020, there were approximately 60,200 customers that would have been disconnected under our normal collection policies, but were not due to certain mandates in place.
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. Enterprise PSUs represents the aggregate number of fiber service offerings counting each separate service offering at each customer location as an individual PSU.
8. 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, loss on extinguishment of debt, (gain) loss on financial instruments, net, other pension (benefits) costs, net, other (income) expense, 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.
   Cable Adjusted EBITDA is defined as Adjusted EBITDA less mobile revenues plus mobile operating costs and expenses. Cable free cash flow is defined as free cash flow plus net cash outflows from operating activities and capital expenditures related to mobile.
9. 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., set-top boxes and cable modems, etc.).
10. 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).
11. Line extensions include network costs associated with entering new service areas (e.g., fiber/coaxial cable, amplifiers, electronic equipment, make-ready and design engineering).

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

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

5