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Charter outlook mixed - Broadcasting & Cable

Charter outlook mixed

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On Monday, Charter Communications Inc. reported increased revenues of
14%, to $1.1 billion during the fourth quarter, while cash flow increased just
7%, to $485 million.

The big drag on cash flow was the disruption from Excite@Home, which filed
for Chapter 11 and is shutting down at the end of the month.

About 25% of Charter's high-speed data customers relied on @Home's high-speed
backbone, so Charter and other MSOs had to rush to switch them to another
network.

Charter hadn't been planning to do that until June.

It has cost Charter about $15 million.

Without the Internet snag and severance cost for some exiting employees,
Charter's cash-flow growth would still have lagged revenue growth, rising
11%.

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