Charter Communications, the third largest US cable operator, reported Q1 revenue of $1.178 billion, an increase of 9.7% over last year's first quarter. Net loss applicable to common stock and loss per share were $182 million and $0.62, respectively. Charter said it made "steady progress operationally" during Q1 principally as the result of aggressive efforts to build its cable modem customer base while also increasing service and package prices for video and data offerings. Other highlights from Q1:
- Charter added 134,200 cable modem customers in Q1, giving it a total of 1,272,300 subscribers as of 31-March-2003, up from 657,900 a year ago.
Charter lost approximately 50,600 analog video customers, as compared to a loss of approximately 157,500 analog video customers in Q1 2002, and 68,800 analog video customers in Q4 2002. The loss includes 13,000 customers previously served by Charter's transitional satellite service outside its network footprint. Charter has discontinued this satellite service.
Charter lost 31,700 digital customers during Q1 2003 but experienced a 2% increase in the average revenue for digital service. The company said its strategy is to focus on customers that are more likely to buy higher revenue and margin digital services.
Revenue generating units (RGUs) totaled approximately 10,474,400 at the end of Q1, up by 51,900 for the quarter.
Due to a substantial reduction in CAPEX, cash required for all operating and investing activities totaled $69 million in Q1 2003 as compared to $502 million for the same period a year ago. The company said it is moving to a "just in time" philosophy with regard to network equipment deployments.
There was a 10% reduction in workforce carried out in Q1.
Charter said it remains committed addressing the heavy debt load on its balance sheet but did not disclose any corporate restructuring plans.
