Charter 1999 Annual Report Download - page 17

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At the same time, we will continue to execute our core video business strategy. We intend to
increase our strong cash flow by delivering new broadband services and by applying our proven,
innovative consumer marketing techniques to deepen market penetration. And we will continue to
deliver outstanding customer service.
We will also continue to analyze potential acquisitions and system swaps to expand and increase
the efficiency of our systems. From the beginning, Charter’s strategy for growth has been to cluster
its cable systems geographically to gain operating efficiencies and economies of scale. Operating
regional clusters helps us accelerate the delivery of new services.
CHARTER’S CULTURE AND BELIEFS
Charter’s success has always been founded on the integrity of its employees. We turn square
corners. We have a strong record of delivering on our promises to our customers and investors.
Our company has grown significantly during the past year, but our values haven’t changed.
I am confident that Charter’s style of management — which emphasizes, encourages, and
rewards decision making at the local level — will ease the integration of our acquisitions. I believe
1999 SUMMARY ANNUAL REPORT 15
RAPID GROWTH IN PAST 12 MONTHS
in thousands CUSTOMERS
CHARTER at year end 1998 2,385
ACQUISITIONS DATE ACQUIRED
Renaissance 4/99 134
American Cable 5/99 69
Greater Media systems 6/99 176
Helicon 7/99 171
Vista 7/99 26
Cable Satellite 8/99 9
Rifkin 9/99 463
InterMedia systems 10/99 278
Avalon 11/99 258
Fanch 11/99 528
Falcon 11/99 955
TOTAL CUSTOMERS at year end 1999 5,452
Bresnan — pending acquisition at year end 2/00 686
PRO FORMA CUSTOMERS at year end 1999 6,138
By completing 12 acquisitions in the past 12 months, Charter has
added 3.8 million customers. With over 6 million customers, Charter
is the nation’s fourth-largest cable operator. A key focus in 2000 is
successful integration of these acquisitions, with improved customer
service and financial performance.
96 97 98 99
10
0
CHARTER
INDUSTRY
AVERAGE
3.5
2.3
4.8
3.1
2.0
3.5
1.7 1.8
INDUSTRY-LEADING CUSTOMER GROWTH
“SAME-STORE” CUSTOMER GROWTH
in percent
We’ve already demonstrated consistent industry leadership in
customer growth. In each of the past four years, Charter has main-
tained “same-store” (for systems under Charter management for
12 months or more) growth rates well above industry averages.