Charter 2012 Annual Report Download - page 5

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Finally,
we
have
reorganized
our
opera-
tions
and
business
processes
to
improve
service
quality
everywhere
we
operate.
That
includes
network
maintenance
and
capital
spending
practices,
roles
and
responsibilities
across
the
organization
and
ensuring
that
our
technicians
and
customer
service
representatives
have
the
training
and
tools
to
do
their
jobs
at
the
highest
quality
standards.
These
initiatives
put
us
in
a
better
position
to
improve
our
services
and
increase
our
market
penetration.
We
now
offer
highly
competitive
video,
phone
and
I
n
ternet
services
that
are
among
the
best
in
the
country—and
we
offer
it
all
in
a
package
delivering
superior
value.
This
combination
of
advantages
creates
significant
opportunity
for
Charter.
It’s
still
early
in
our
efforts,
but
our
2012
results
are
encouraging.
We
grew
revenue
3.9%
last
year
and
added
nearly
110,000
new
residential
customer
relationships.
Moreover,
our
revenue
growth
was
accelerating
at
the
end
of
the
year.
As
we
ended
2012,
approximately
30%
of
our
customer
base
was
under
our
new
pricing
and
packaging.
These
customers
have
richer
products,
are
less
likely
to
require
service
calls,
and
are
less
likely
to
churn.
In
addition
to
our
progress
in
the
residential
market,
we
also
have
a
tremendous
opportunity
in
commer-
cial
services,
providing
advanced
broadband
and
telecommunications
services
to
the
busi-
ness
market.
That
opportunity
is
just
beginning
to
be
developed
in
Charter’s
footprint,
and
in
2012,
we
saw
another
year
of
20%
revenue
growth
in
this
part
of
our
business.
Our
adjusted
EBITDA
was
$2.694
billion
in
2012,
and
over
time,
the
operational
improve-
ments
and
pricing
strategies
are
designed
to
grow
the
bottom
line
with
free
cash
flow
to
follow.
Progress
toward
these
goals
will
be
measured
by
deeper
product
penetration,
higher
revenue
per
relationship,
lower
transaction
costs
per
customer,
and
longer
customer
lifetimes.
In
2013,
we
are
focused
on
a
few
key
areas
of
execution.
The
first
is
to
maximize
the
full
potential
of
our
two-way,
high-capacity,
interactive
cable
plant.
This
means
maintaining
our
superior
Internet
speeds
and
reliability,
investing
in
plant
improvements
that
sustain
high
Charter
Communications,
Inc.
3
201220112010
$2,694
$2,6 80
$2,595
ADJUSTED EBITDA
(IN
MILLIONS)
*
See
Use
of
Non-GAAP
Financial
Measures
on
page
F-47
of
this
Annual
Report.
“ ”
THIS IS AN EXCITING TIME AT CHARTER,
WITH SIGNIFICANT CHANGE AND AN
OPPORTUNITY FOR FASTER GROWTH