Charter 2013 Annual Report Download - page 4

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2
2013 Annual Report
Over the last two years, we have fundamen-
tally transformed Charter: from our products,
pricing and packaging, to our field operations
and execution, to our customer care and
service operations. I’m very pleased to report
that this transformation is delivering the
desired results. We entered 2014 with signifi-
cant momentum and a clear path to creating
greater value for our customers and our
shareholders.
Our 2013 performance demonstrates our
progress. Revenue of $8.4 billion rose 5%
year over year.1 We added 172,000 new resi-
dential customers, 43% more than we added
in 2012, and we now serve over 5.6 million
homes with our services. We also improved
unit growth across each of our primary service
categories of video, Internet and voice. Our
residential revenue grew by 5% in 2013, more
than double its growth in 2012, and com-
mercial revenue grew by 20%. Adjusted
EBITDA2 rose to $2.9 billion, an increase of
3% year-over-year. Our balance sheet is well
positioned to support our growth strategy
and to deliver attractive returns to investors.
Our strategy is founded on a simple but
powerful principal: that Charter can create
tremendous shareholder value by adding new
customers and by deepening and extending
its relationship with existing customers.
We will achieve these goals by offering best-
in-class video, Internet and voice services,
coupled with outstanding customer service.
Today, we already offer a superior broad-
band product, and over 75% of our residen-
tial Internet customers are receiving data
speeds from Charter of 30 Mbps or more—
and this will increase to 60 Mbps by the end
of 2014. We have also dramatically improved
our video product over the last two years,
adding more HD channels and actively mar-
keting digital products. As a result, we have
stabilized our video customer base, and in
2013, we began taking back multichannel
video market share from our competitors.
As we complete our network-wide move to
all-digital in 2014, we are in a great position
to grow our video customer base.
Dear Shareholders,
THOMAS M. RUTLEDGE,
President and Chief Executive Officer
1 All customer data and results, unless otherwise noted, are pro forma for the Bresnan transaction, as if it had occurred on
January 1, 2012.
2 See Use of Non-GAAP Financial Measures on page F-49 of this Annual Report.