Charter Communications Inc at JPMorgan Global Technology, Media and Communications Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Sebastiano Petti - J.P. Morgan - Analyst : <_ALACRA_META_ABSTRACT>Awesome. So maybe just to kick off, while the broadband operating environment remains somewhat challenged, Charter posted solid 1Q results, which we'll get to momentarily. But before we do that, why don't you take a moment to update us on the team's key priorities and near-term milestones and how we should expect those to develop over the near and medium term?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Great. And then touching on -- well, coming back to something you just touched on there. So the brand relaunch with Spectrum Life Unlimited launched in September and based on 1Q results, the strategy appears to be working as you touched on there. Where are we in terms of sell-in and attach rates? Is that still ramping? I mean what inning is it in terms of that rollout? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 1:30PM, CHTR.OQ - Charter Communications Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Sebastiano Petti - J.P. Morgan - Analyst : Yeah. And I guess sticking with that theme for a second. So 2Q broadband net adds as you look out and expectations, why should we be thinking about seasonality on a sequential basis? Over the last couple of years, we've talked about other competition as well as more maybe more maturation within the market. You've probably seen some of that seasonal shifts probably taper off to an extent. But in 2Q, I would imagine you probably still expect some level.

Question: Sebastiano Petti - J.P. Morgan - Analyst : And then you touched on just speaking to Spectrum Life Unlimited, just the ability to kind of earn price, right? But as you think about that product rollout and the focus on maybe managing promo roll-offs and, I guess, particularly against this macro backdrop. Does that change your view at all of taking price and maybe passing through programming cost inflation?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Got it. And back to broadband for a moment there. On the call, Chris noted that mobile substitution still remains below pre-pandemic levels, but continues to normalize. Been an area of focus coming out of the first quarter results. Any notable change, I guess, maybe in mobile substitution trends in 1Q relative to the last several quarters in terms of that return back to pre-pandemic levels?

Question: Sebastiano Petti - J.P. Morgan - Analyst : So now shifting gears to just 2025 EBITDA expectations. You reported a strong first quarter, excluding a one-timer. Tell us, is this level of growth sustainable in the second quarter and before maybe comps a little bit tougher in the second half? And maybe what are some of the underlying drivers? And what's durable within that outperformance, I guess, in the first quarter?

Question: Sebastiano Petti - J.P. Morgan - Analyst : And as you think about the AI/ML and other just multiyear focus on improving the customer experience and investing in your sales force -- longer tenured sales force, is this cost of serve tailwind, I'll call it, is this a multiyear opportunity perhaps?

Question: Sebastiano Petti - J.P. Morgan - Analyst : And the cost, you announced the cost program last year to focus on longer -- near-term as well as longer-term cost efforts, but nothing that would hinder acquisition strategy. Is there maybe longer-term opportunities that are still on the come of programs that are perhaps in-flight that we should be thinking about? Or any chunky opportunities?

Question: Sebastiano Petti - J.P. Morgan - Analyst : And thinking about the transaction side for a moment there, Spectrum Life Unlimited, right, you have maybe higher connect activity, higher SAC to an extent, perhaps drove to some partially higher sales and marketing in the first quarter. Is that -- how do you balance those two, I guess, in terms of the efficiency side, but your new pricing and packaging strategy trying to drive higher level of connect activity. Is that a pressure that we should anticipate continuing?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Got it. Okay. That's helpful. Now switching to convergence and mobile for a moment here. So net adds did reaccelerate in the first quarter. Is that just entirely driven by the Life Unlimited gross add and churn benefits? And help us maybe think about how your new pricing and packaging bundle value proposition is resonating in the market? Just trying to think about that.

Question: Sebastiano Petti - J.P. Morgan - Analyst : Right. So actually, to that last point, I think we've talked so absolute or just the number of disconnects getting thrown off that larger base is going up. But I think churn on a rate basis is on a percentage basis --

Question: Sebastiano Petti - J.P. Morgan - Analyst : Yeah. What's driving that? How do you think about that?

Question: Sebastiano Petti - J.P. Morgan - Analyst : And where do you think, I guess, what, 20% of your broadband base is now penetrated by mobile. Where -- what is the team's aspirations longer term where that can go?

Question: Sebastiano Petti - J.P. Morgan - Analyst : And then with -- I think you touched on in your opening remarks about the CBRS rollout, I think Chris said on the most recent call, you plan to be in 23 markets by year-end. Any early learnings in your current deployments?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Awesome. And shifting gears back to video, as you touched upon earlier, I guess this seamless entertainment still on the come, and I think Chris described it as a call option, right on the first quarter call. Can you maybe just help us in terms of thinking about update on the timing of the digital storefront and maybe next milestones or steps from here before launch?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Got it. And then on the business services side, as we think about SMB, PSUs there or the decline in PSUs has maybe accelerated a little bit over the last couple of quarters. Help us think about whether this is a function of just FWA and fiber pressures accelerating there? And you touched upon earlier, the new rollout of Life Unlimited pricing and packaging in this segment. How -- maybe help us think about the team's expectations in terms of bending the trend and PSUs there?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Got it. And then on the mid-market and large business side, revenue was up 3.9%, driven by accelerating PSUs with growth up 4.4% ex wholesale. I didn't ask, but it's good to see maybe the cell tower backhaul component of that wholesale is not as much of a headwind as it has been. So maybe we're on the other side of the tunnel there, but as we think about the steady growth and volume improvement there, is this -- what are you seeing there? Is this a durable trend? And again, are we near that end of the headwind on the wholesale side? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 1:30PM, CHTR.OQ - Charter Communications Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Sebastiano Petti - J.P. Morgan - Analyst : Okay. And then maybe as we kind of near the end here, as we think about capital allocation, I think you said on the call, you now expect leverage to gradually increase to the midpoint of your 4 to 4.5 times range pro forma. And I think I asked you this, but why not accelerate the pace of that pace of buybacks a bit faster?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Got it. And then should we expect the midpoint of the range as you kind of made that pivot last year, I think, is this the new kind of longer-term destination on the leverage side?

Question: Sebastiano Petti - J.P. Morgan - Analyst : And within that, as we think about CapEx, it came in a little light or low in terms of the first quarter at $2.4 billion, but CapEx guidance for the year was reiterated at $12 billion which implies a pretty sharp ramp for the remainder of the year. We have been -- this is not abnormal, I guess, in terms of particularly cable and communications in terms of timing and seasonality, but is there any risk to the guide coming in below? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 1:30PM, CHTR.OQ - Charter Communications Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Sebastiano Petti - J.P. Morgan - Analyst : And then in terms of your capital program, the rural build-out, you reiterated expectations to build 450,000 new rural subsidized passings in 2025 despite maybe getting out the gate a little bit slower in the first quarter here. Maybe similar to the CapEx question, I guess, what gives you confidence in terms of meeting your 2025 target given the slower start?

Question: Sebastiano Petti - J.P. Morgan - Analyst : And is this maybe the right pace as we think about 2026? And as you kind of -- was it 2027 is when you believe you will near the end of the program? Or just help us think about the cadence of build activity as you complete the program.

Question: Sebastiano Petti - J.P. Morgan - Analyst : Yeah. And any update on BEAD in terms of considerations appetite?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Got it. And then lastly, within the network road map. Help us think about the network evolution and update us perhaps where you are on that build timeline of completion? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 1:30PM, CHTR.OQ - Charter Communications Inc at JPMorgan Global Technology, Media and Communications Conference

Question: Sebastiano Petti - J.P. Morgan - Analyst : Got it. And as we think about building scale within those Step 1 markets and moving on to Step 2. When should we perhaps expect maybe pricing and packaging updates or changes or maybe increased emphasis on sales and marketing within those high split markets? What's the timing on that?

Question: Sebastiano Petti - J.P. Morgan - Analyst : So to date, you're already offering or marketing symmetrical speeds in some of your markets?

Question: Sebastiano Petti - J.P. Morgan - Analyst : And remind us -- I think Chris, but remind us where are you again on the Step 1 markets in terms of the number of markets that have been deployed already?

Question: Sebastiano Petti - J.P. Morgan - Analyst : Okay. And to date, but eight total at this point, yeah.

Question: Sebastiano Petti - J.P. Morgan - Analyst : Got it. And then I think that's probably a great place to end it. Jessica, thank you for joining us. Thanks, everybody.