Insight sees wider losses in Q3, customers steady
Insight Communications Co.'s third-quarter losses widened to $25 million, or 42 cents a share, on revenue that jumped 48.7 percent to $177.4 million. Revenue and operating costs increased after Insight's purchase of AT&T's Illinois cable systems earlier this year.
The company's customer numbers also reflected the acquisitions.
Insight's basic cable customer numbers reached 1.2 million in its third quarter, basically flat with second-quarter 2001 results, but up dramatically since it reached 915,000 in third quarter of last year. Basic cable penetration stayed fairly steady, however, up to 58.5 percent in Q3 2001, 58.6 percent in Q2 2001 and 58 percent in Q3 2001. Cable revenue jumped from $104 million in the third quarter of last year to $143.2 million in second quarter of 2001, which rose modestly to $143.7 million in Q3.
High-speed data modem customers reached 84,900, compared with 73,300 in second quarter of 2001, and up substantially from 23,700 a year ago. Cable-modem-ready penetration was 5.1 percent, 4.6 percent and 2.2 percent, respectively. Modem revenue jumped from about $3 million a year ago to $8.5 million in second quarter of 2001 and then rose slightly to $9.9 million in third quarter.
Digital Cable customers reached a year's high at 229,600, compared with 201,200 in the second quarter of this year and a mere 73,200 a year ago. Digital cable penetration was 20.5 percent, 18 percent and 11 percent respectively. Digital revenue nearly tripled over last year, reaching $12.1 million in third quarter of 2001, $11.6 million in second quarter and a relatively paltry $4 million a year ago.
Insight says the revenue from its purchase of AT&T's systems accounted for about 77.1 percent of the total revenue increase. Revenue reached $177.4 million, compared with $119.3 million a year ago. Its net losses widened to about $25 million, or 42 cents a share, from $16.6 million, or 28 cents a share, a year ago.