Charter Communications, Inc.

Hello and welcome to the Charter Communications third quarter 2022 investor call. We ask that you please hold all questions until the completion of the formal remarks, at which time you'll be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. I will now turn the call over to Stefan Aniger. Please go ahead.

Good morning, and welcome to Charter's third quarter 2022 investor call. The presentation that accompanies this call can be found on our website, ir.charter.com, under the financial information section. Before we proceed, I would like to remind you that there are a number of risk factors and other cautionary statements contained in our SEC filings, including our most recent 10-K and also our 10-Q file this morning. We will not review those risk factors and other cautionary statements on this call. However, we encourage you to read them carefully. Various remarks that we make on this call concerning expectations, predictions, plans, and prospects constitute forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ from historical or anticipated results. Any forward-looking statements reflect management's current view only, and Charter undertakes no obligation to revise or update such statements or to make additional forward-looking statements in the future. During the course of today's call, we will be referring to non-GAAP measures as defined and reconciled in our earnings materials. These non-GAAP measures as defined by charter may not be comparable to measures with similar titles used by other companies. Please also note that all growth rates noted on this call and in the presentation are calculated on a year-over-year basis, unless otherwise specified. On today's call, we have Tom Rutledge, Chairman and CEO, Chris Winfrey, our COO, and Jessica Fisher, our CFO. With that, Let's turn the call over to Tom.

Thank you, Stephan. As I look at our current advanced offerings, our future product plans, and the underpenetration of our network, we're well-positioned to grow our business at very attractive rates for many years to come. During the quarter, we added 75,000 Internet customers. Customer relationship churn remains very low due to current consumer behavior, and while the lower year-over-year Connect activity improved, Connect's remained challenged due to the low activity environment. We continue to see very strong mobile line growth, with net additions of 396,000, our best quarter yet. Over the last year, we've grown our mobile lines by nearly 50%, and as of the end of the quarter, we had nearly 4.7 million total mobile lines. Our opportunity in mobile is very large, and we're still at the beginning of developing that business. Today, we only capture 28% of the combined household spend on wireline and mobile connectivity within our footprint. So we remain significantly under-penetrated versus the opportunity in front of us. And we're delivering the fastest internet and the fastest Wi-Fi speeds in the nation, and the fastest mobile speeds when combined with Wi-Fi, all the while serving customers, saving customers, I should say, thousands of dollars a year. Today, we have close to 500 million devices connected to our network, the vast majority of which are connected to us wirelessly. Ultimately, I expect that virtually all devices connected to our network will connect wirelessly. To continue to improve our services, we also remain focused on involving our network to offer the fastest speeds in the most cost- and time-efficient manner. Data usage continues to grow at a fast pace. Internet customers who do not buy traditional video from us use nearly 700 gigabytes per month. Nearly 25% of those customers use a terabyte or more of data per month. Downstream traffic still dominates usage at a ratio of 14 to 1 versus upstream traffic. In the near term, we're implementing spectrum split upgrades, which expand our plant capacity bidirectionally and allow us to allocate more bandwidth to the upstream, all using our existing DOCSIS 3.1 infrastructure. In turn, we'll be able to offer our customers higher symmetrical speeds and multi-gigabit speeds in the downstream, Our network evolution path also includes DOCSIS 4.0, so we can maintain a state-of-the-art network that delivers the most compelling converged connectivity services in a capital and time-efficient manner, and in turn offer those advanced services to consumers at highly attractive prices. As you may know, I plan to step down as CEO on December 1st. At that time, Chris Winfrey will become our new CEO, and I'll become executive chairman. It's been personally fulfilling to lead Charter over the last 10 years. We've grown our company through innovation and strategic investments and positioned Charter to provide the best connectivity products and services available today everywhere we operate. Our products have continually evolved and changed the world during my career, from the carriage of broadcast signals when I began to the development of robust video and multi-channel cable networks. And from the early days of broadband, Internet, and voice to now offering fully ubiquitous wireless connectivity, we continue to drive new uses for our networks to bring value to consumers. And our opportunity to innovate and grow is greater today than ever before. Having worked closely with Chris for more than 10 years, I know that he's the right choice to be our next CEO. He will serve Charter with both vision and skill, leading the company to new heights. Chris's leadership and expertise in both operations and finance have been pivotal to Charter's growth and success over the past 10 years. He's repeatedly demonstrated innate strategic insight and keen market and industry awareness to drive our organization to perform at the highest level. And with that, I'll turn the call over to Chris.