Charter Communications (CHTR) BofA Securities 2024 Media, Communications and Entertainment Conference summary

Strategic focus and business initiatives

• Progress continues across evolution, expansion, and execution initiatives, including network upgrades for multi-gigabit speeds and mobile convergence with new offerings like Anytime Upgrade and phone balance buyout.

• Video packages are being enhanced for flexibility and value, with construction underway to add 450,000 subsidized rural passings this year, exceeding expected returns.

• Execution improvements include employee tenure investments, digitization, and expense management, driving financial efficiency and better customer service.

• Customer-centric service delivery is prioritized, aiming for long-term market performance and business improvement.

Broadband, ACP transition, and customer retention

• Retention of ACP customers has been strong, with voluntary churn and payment activity aligning with expectations after ACP credits ended.

• No significant spike in bad debt is expected, as high-risk customers are accounted for on a cash basis and mobile payment trends are favorable.

• The end of ACP is seen as a one-time issue, with the company well-positioned to serve price-sensitive customers post-ACP.

• Churn and connect activity are expected to rise slightly next year as the market adjusts to the post-ACP environment.

Competitive landscape and market strategy

• Fixed wireless competitors have gained share, but reliability and speed issues are leading some customers to return.

• Differentiation against fiber and fixed wireless is achieved through converged mobile, flexible video, and high-quality service.

• Pricing competitiveness is emphasized, especially for price-sensitive segments, with ongoing marketing efforts to highlight value.