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Cable Technology Feature Article

April 28, 2010

Charter Reports Preliminary First Quarter 2010 Financial and Operating Results

By Anil Sharma, TMCnet Contributor

Charter Communications, Inc., a broadband communications company and the fourth-largest cable operator in the United States, expects revenues for the first quarter of this year to be around $1.735 billion, an increase of 4.5 percent compared with the pro forma results of the first quarter of 2009.

Officials said its revenues increased primarily as a result of digital video, high-speed Internet, telephone and commercial customer growth.

Operating costs and expenses, which include operating and selling, general and administrative expenses, are expected to be approximately $1.098 billion, an increase of 5.1 percent compared to the pro forma results of the first quarter of 2009.

The increase in operating expenses for the quarter is primarily due to increased programming expenses related to annual rate increases and higher labor costs.

'We are pleased with our solid first quarter performance, as we added new digital video and high-speed Internet customers at an accelerated pace compared with last year's first and fourth quarters,' said Mike Lovett, president and CEO.

Lovett said that the company's robust and scalable infrastructure provides a solid foundation for bundled service offerings.

"As we add new communications and entertainment solutions in the residential and commercial markets, we believe there is opportunity for future growth,' Lovett added.

Officials with Charter also announced that the company expects capital expenditures for the first quarter to be approximately $310 million, compared with $269 million in the first quarter of 2009.

In addition, the company continues to anticipate that capital expenditures for the full year will be approximately $1.2 billion, and continues to target deploying switched digital video to more than 60 percent of its footprint and DOCSIS 3.0 to approximately half of its footprint by year end 2010.

Anil Sharma is a contributing editor for TMCnet. To read more of Anil's articles, please visit his columnist page.

Edited by Stefania Viscusi