An additional savings target
Charter Communications has announced a new operating model and a target of $2 billion in annualised operating-expense savings over the next 18 months. The November 6 plan is additional to more than $1 billion in anticipated savings from the Cox transactions.
The company plans to simplify its organisation, remove nonessential activities and improve vendor efficiency. It also says it will refocus internet sales, retention and service delivery. These are targets and planned changes, rather than savings already achieved.
Internet losses and mobile growth
On a pro forma basis that includes Cox for comparable periods, Charter lost 233,000 internet customers in the quarter ended September 30: 156,000 at legacy Charter and 77,000 at legacy Cox. It ended the period with about 34.3 million internet customers.
Mobile lines increased by 508,000 on the same comparable basis, taking the total to about 13.5 million. Mobile lines and internet customer accounts are different measures and should not be added together as a single customer total.
Why two sets of financial results appear
Actual revenue was $14.9 billion, up 9.1% year over year, with Cox included from August 20. Pro forma revenue, which treats the combination as present throughout the comparison periods, was $16.5 billion, down 1.5%.
The actual net loss attributable to Charter shareholders was $2.4 billion. A $6.3 billion franchise impairment charge was the main reason for the loss. The release’s new cost plan does not specify a universal new Spectrum retail price; the Cox-area product and packaging rollout it describes began on September 16.
