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Mediacom prospers in Q1

Fri, 05/05/2006 - 7:06am
Brian Santo, CED

Consistent with other cable operators' first quarters, Mediacom Communications reported increases in quarterly revenue, profit, and revenue per subscriber.

Mediacom netted 26,000 new high-speed data subscribers, for a total of 504,000; a year ago, the company added 40,000 data customers. At the end of Q1 2005, the company had 46,000 telephone customers, up from 22,000 a year ago.

The company lost 1,000 basic video subscribers, compared to a loss of 6,000 the prior quarter, and a gain of 3,000 in Q1 2005. The conversion of Mediacom's customers to digital service is slowing. In Q1 2005 Mediacom reported an additional 3,000 digital customers; in Q4 it tallied 17,000 new digital subs, and a year ago the number was 34,000.

The number of Mediacom's customer relationships has risen very modestly in comparison to the number of revenue-generating units, suggesting the growing value of bundling. The company said the triple play was available to 1.6 million homes; Mediacom plans to increase that to 2.5 million homes by the end of the year. First quarter ARPU was $67.80, up from $60.81 a year ago.

Revenue was $289.3 million, an increase of 8.7 percent over Q1 2005. Adjusted operating income was $107.6 million, an increase of 8.5 percent from last year.

Video revenues grew 3.6 percent, as a result of basic rate increases and higher fees from advanced video products, offset by a 2.7 percent year-over-year decrease in basic subscribers. Data revenues rose 22.3 percent, primarily due to a 23.8 percent year-over-year increase in data customers. Advertising revenues increased 17.0 percent, primarily due to stronger local and regional advertising.

"We are extremely pleased with our performance in the first quarter, which puts us on target to reach our financial guidance for the year," said Rocco B. Commisso, Mediacom's Chairman and CEO.

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