Cox sees positive Q3, issues guidance for 2001
Cox Communications Inc. saw run rates rise in cable, Internet and telephony, and third-quarter revenue rose to $1.03 billion from $902 million a year ago.
The company's digital cable-ready homes passed rose from 6.4 million Sept. 30, 2000, to 8.6 million at the end of its second quarter of 2001. That rose slightly to 9 million in third quarter. Average weekly run rate for the sector fell from 9,470 in Q3 2000 to 8,524 in Q2 2001, then rose to 12,053 in Q3 2001. Customer numbers for those periods were 683,076, 1.1 million and 1.2 million, respectively.
High-speed Internet access-ready homes passed rose from 5.9 million in Q3 2000 to 8.4 million in Q2 2001 and 8.7 million in Q3 2001. The sector's average weekly run rates for those periods were 6,036, 6,221 and 8,574 respectively. Customer numbers were 398,816, 668,038 and 779,499 respectively.
Finally, its telephony-ready homes passed rose slightly between 2.1 million in Q2 2000 and 2.8 million in Q2 2001, then jumped to 3.1 million in Q3 2001. Average weekly run rate for the same periods were 3,007, 4,023 and 4,176 respectively. Customer numbers were 205,676, 344,524 and 398,813 respectively.
Also in telephony, Cox reports that it's selling an average of 1.40 lines per customer in Q3 2000, which fell to 1.32 each in Q2 2001 and then fell again to 1.30 each in Q3 2001.
Cox also saw Q3 2001 net earnings of $143 million, or 24 cents a share, compared with $838 million, or $1.39 a share, for the same period last year, it said. The cableco reached $1.03 billion in revenue, compared with $902 million a year ago.
Cox cited soft advertising sales and associated impact of Sept. 11, which will "have a continuing effect on advertising revenues in the fourth quarter," it says in a statement. The company expects revenue growth of 14 percent and OCF growth of 12 percent for 2001.