Would you happen to know if Charter contracts out
non-pays and who does them in OK?
Thanks
> "He also hinted at possible headcount reductions as the company looks to further slash costs."
>
> hmmm...
>
>
> Charter Churn Rate to Slow
> By Mike Farrell
> Multichannel News
> 11/5/2002 4:32:00 PM
>
> Subscriber losses at Charter Communications Inc. will continue in the fourth quarter, but at a slower pace, MSO officials told analysts in a conference call Tuesday morning.
>
> Charter, which pre-released its third-quarter results Oct. 24, offered few surprises in its quarterly conference call -- revenue in the period was up 13 percent and cash flow increased 9 percent, as expected.
>
> But on the call, CEO Carl Vogel said subscriber losses -- 86,000 in the third quarter --would continue in the fourth quarter to the tune of 30,000 to 40,000 customers.
>
> Vogel also said revenue growth in the fourth quarter would be between 8 percent and 9 percent, with cash flow expected to rise between 4 percent and 5 percent -- well below analysts’ estimates.
>
> With the expected fourth-quarter subscriber losses, the MSO is on track to end the year with nearly 300,000 fewer customers.
>
> Vogel said that of those subscribers who have fallen from the ranks this year, only about 150,000 of them were due to nonpayment of service. The rest were likely lured away as a result of aggressive discounts from direct-broadcast satellite competitors. And he added that the company is putting together a package to win those customers back.
>
> Vogel said Charter is adding promotional pricing to its product suite -- a $29.95 basic package for three to six months -- and testing some lower-priced packages with less content in markets where it sees the highest DBS competition.
>
> Although Vogel has talked about a low-priced offering before, he offered analysts a little more detail, stating that it likely would be a 50- to 60-channel analog offering, including local channels and some national networks, for between $35 and $37 per month. Charter’s average price point is between $42 and $45 per month, he said.Charter’s digital and high-speed-data services continued to gain momentum, with digital customers up 147,000 in the period. High-speed-data customers rose 150,000 in the third quarter.
>
> However, although digital penetration is impressive at 38 percent, Vogel said, churn rates -- at about 4 percent to 5 percent per month -- are too high. As a result, he added, Charter 'will likely slow our digital growth in some markets until we see the necessary improvements in retention.
>
> 'Vogel said efforts to keep costs down continue, and capital expenditures for 2003 will be between $1.1 billion and $1.3 billion, compared with $2.4 billion for 2002.
>
> He also hinted at possible headcount reductions as the company looks to further slash costs.
>
> Charter currently has about 18,700 employees, or about one employee for every 358 customers. Although Vogel said that ratio is lower than many of Charter’s peers, 'it is a significant cost of our business that may provide an opportunity for improvement over time as we complete our rebuilds, consolidate headends and operational centers and complete our billing conversions throughout 2003.
>
> 'Charter stock fell 27 cents each, or more than 18.6 percent, to $1.18 per share Tuesday.
>
>
Re: Charter layoffs?
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