Charter 2002 Annual Report Download - page 5

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2002 Annual Report 3.
Our video revenues continued
to increase as a function of service
price adjustments and continued sell-
in of more profitable digital service
packages. We have increased video
revenues even while experiencing a
loss of customers.
Analog video customer erosion
is our single biggest challenge, and
the area receiving the most attention
from our entire organization. We
are working diligently to attempt to
reverse this trend of analog video
customer losses. In the fourth quarter
of 2001, and throughout 2002, we
moved away from deep-discounting
sales practices employed in prior years
as the primary customer acquisition
tool. While competition from satellite
providers is intense, our focus on
price-value messaging in the sale
of bundled video and high-speed
data services has produced revenue
growth and improved our competitive
position. When video and high-speed
data services are bundled into com-
petitively priced service packages,
we believe we have a compelling
message to consumers. Add video
on demand, interactive services, high
definition television, local content
and planned PVR capability, and we
believe we have a winning combina-
tion of products for the marketplace.
Charter’s business has performed
well. First quarter 2003 revenues were
$1.18 billion, a 9.7 percent increase
from comparable 2002 levels and
cash flows from operating activities
were $162 million, a 58.8 percent
increase over the year-ago quarter.
Our first quarter results show the
positive fruits of Charter’s operating
strategy: continue to grow the busi-
ness by increasing the penetration
of digital services and high-speed
data, reduce customer churn by
delivering excellent value through
service bundles, decrease operating
costs by intelligently consolidating
functions, and embrace customer
service standards and practices
that will improve our market share.
Despite distractions and
difficulties encountered in the past
12 months, Charter is making tangible
progress financially and operationally.
Our business is resilient, our revenues
are increasing, and our service array
continues to expand. For that, we
credit the hard work, dedication
and resolve of our employees who
continue to make Charter’s Wired
World™vision a daily reality for
millions of customers nationwide.
Carl E. Vogel
President and Chief Executive Officer
Paul G. Allen
Chairman
June 13, 2003
Carl E. Vogel
President and
Chief Executive Officer
Paul G. Allen
Chairman