Charter Communications, Inc. Q1 2008 Earnings Call Transcript

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2008-05-12 11:10:11.0

Tags: Charter Communications Inc.

Question-and-Answer Session

Operator

(Operator instructions) Your first question comes from Michael Pace – JPMorgan.

Michael Pace – JPMorgan

For Eloise, in our notes we see a onetime benefit in the first of ?07 on EBITDA, can you just remind us what that was, again I have my notes, it was about 2% of growth in that quarter and further adjusting EBITDA for that, coming up with mid 12% EBITDA growth. Wanted to confirm our math and make sure we’re not double counting.

And then on the digital net adds side, haven’t seen adds growth like that in a while, were there special promotions, was it a rollover from the holiday season for high def TVs and such?

Eloise Schmitz

There was about a $2 million benefit in the first quarter of ?07, so that is correct. I think your math was right on that.

Neil Smit

Concerning digital RGUs, we did see a good rebound there. I think it was due to targeted marketing strategies where we were looking at increasing advanced services penetrations and up selling really contributed to the success. We think there’s a good opportunity to promote those advanced services once you’ve got a customer into a digital tier.


We’re going to continue to trial and refine the offers that attract different customer segments. We did see overall in video a strong quarter from RGUs at 91,000 and also good ARPU growth in that in the overall product line at 6.4%.

Eloise Schmitz

Sorry Mike, I reversed it, it was about a $5 million benefit, you were right and about a two point benefit, I reversed them, sorry.

Operator

Your next question comes from Jason Bazinet – Citigroup

Jason Bazinet – Citigroup

I think in the commentary you mentioned a 50% increase in HD and DVR net adds on a year-over-year basis, I was just wondering, is that acceleration consistent with your expectations and consistent with the full year CapEx budget that you guys outlined for the year.

Neil Smit

It is consistent with our CapEx budget of $1.2 billion. We did see good HD growth; we’re increasing the on-demand choices. We now have about 200 HD options. We’ve got, on the VOD side, we also saw strong growth at VODR orders were up about 44% compared to the first quarter of last year. So it is consistent with our CapEx budget and we remain optimistic in that overall in the advanced services to video.

 

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