Charter 2005 Annual Report Download - page 5

2005 Annual Report 3
understand that delivering positive customer experiences is
crucial to achieving consistent growth. We will support their
continued professional growth and development, providing
the right tools and training necessary to accomplish our goals.
Utilizing targeted marketing
to grow the customer base
and improve retention
We plan to grow sales and
improve retention by providing
attractive products and services
and investing in targeted market-
ing programs. We will continue
to place a high priority on the
ongoing roll-out of telephone
service and on achieving
increased telephone penetration
so that we can offer bundled
products that help set us apart
from the competition and
reduce churn.
Focusing on investments that
drive profi table revenue growth
We will place a priority
on capital and operational
initiatives with the highest return on investment, including
the telephone roll-out, the promotion of product bundles,
and targeted marketing.
Continuing our opportunistic approach to improving
Charter’s long-term fi nancial fl exibility
We will continue to seek out opportunities to reduce overall
leverage, manage maturities, and lower borrowing costs,
which gives us both the time and resources to further build
our business and generate value for our shareholders.
Delivering Results
It’s clear that the work we’ve done to sharpen our focus
and execute our strategies is beginning to deliver results. In
the fourth quarter of 2005, we added 133,000 net revenue
generating units (RGUs), the highest fourth-quarter growth in
three years. The momentum strengthened in the fi rst quarter
of 2006, when we added nearly 295,000 net RGUs — the
largest gain in any quarter in the last three years. We achieved
growth in each of our customer categories, and we did it while
achieving our fi fth consecutive quarter of reduced churn, refl ecting
the quality of the customer relationships we’re establishing.
Higher customer counts are beginning to result in increased
revenue. For the fourth quarter of 2005, revenues increased
$66 million, or 5.2 percent, over the prior-year quarter, and in
the fi rst quarter of 2006, total
revenues were up $103 million,
or 8.1 percent, from the
comparable 2005 quarter.
In short, compelling products,
attractive bundles, improved
customer service, and targeted
marketing are driving signifi cant
RGU growth, which in turn is
generating improved revenue
growth. As these improvements
continue to build momentum,
we expect to see this translate
into growth in EBITDA (earn-
ings before interest, taxes,
depreciation and amortization).
We are committed to making
Charter the premier provider
of in-home entertainment and
communications services in
our markets, and we have a clear plan to reach this goal. We
are proud that our approximately 17,000 employees across
the organization have rallied behind this commitment, and
we are grateful for their support.
On behalf of all of us at Charter, we thank you for your
continued support as we work to delight our customers,
strengthen our company, and create value for our stakeholders.
Sincerely,
Neil Smit
President and CEO
Paul G. Allen
Chairman
We are committed to making
Charter the premier provider
of in-home entertainment and
communications services in our
markets, and we have a clear
plan to reach this goal. We are
proud that our approximately
17,000 employees across the
organization have rallied behind
this commitment, and we are
grateful for their support.