Charter Communications, Inc. (NASDAQ:CHTR) Q4 2022 Earnings Call Transcript

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Jessica Fischer : On the EBITDA side, as you said, we don’t give EBITDA guidance, but certainly, we do expect growth in 2023. I think I drive it out of a few things. We have continued to have customer growth. I think we’ve talked about on the rate side. We have taken some small rate actions recently. And then we continue to believe that we have — we continue to expect rates to be good across those customers. So driving revenue growth. I would remind you that we lapped last year’s rate increases in April. So to your comment around timing, the second quarter is probably the space in which that’s most challenged. But — and then as Chris said, we’ve made these investments in tenure. We expect to gain better efficiencies both out of the tenure initiative, out of the continued digitization of the process that we have.

We continue to improve in our operational efficiency, which drives sort of relative costs out of the business. And so I think we’re pretty confident in generating that EBITDA growth year-over-year.

Christopher Winfrey : You mentioned pricing action and maybe there was some confusion there, but I’ll start with what we’ve done. We — our philosophy hasn’t changed. We’re focused on trying to provide competitive products at the best price in the market and best packaging so that we can grow faster. But given what’s happened in the video space, we continue to pass through rate increases for the programming increases that we’ve seen. And if you look back to the middle of last year, you can see it pretty dramatic, given where the economy was and if you’re on people’s mind, we did a pass-through in the middle of the year. You saw a big downgrade in video and voice. We’ve done some additional pass-through as well as a small increase on Internet lower than our competitors to maintain our competitiveness.

And we did that for Internet-only inside of Q4, and we wanted to wait until you could combine that from a service experience, not to have the bill change twice for customers. So bundled Internet customers is just taking place at the beginning of — bundled video with Internet customers taking place at the beginning of this year. The reaction there has been pretty muted. It’s very low call volume, and given where the rest of the market has been and what we’re doing is still maintaining our competitiveness. I am not seeing a big uptick in churns related to the price actions that we pass through.

Operator: Our next question will come from Ben Swinburne with Morgan Stanley.

Benjamin Swinburne : A few questions on the rural build. Jessica, thanks for all that detail at the beginning on the sort of non-RDOF pieces. I think you talked about $3,000 of passing net. So I guess a couple of things. Should we think about that as 5,000 gross? And do you guys have visibility into the timing of when you’ll receive those subsidies and also sort of the accounting treatment revenue versus CapEx, so we can think about trying to give you those benefits as we layer on the spending? And then I don’t know if you’re willing to tell us what you think you’ll build in ’23. I’m guessing, no, but we can make our own assumptions. If we think you’re going to build to, say, 500,000 rural passings in ’23, is there any way to help us think about how many of those you’ll sell into over the course of the year?

I assume at this point, you guys are getting better at turning this stuff on and getting to market. So any help on the timeline and lag from what you’ve learned so far would be helpful.

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