RCN increases revenue, loses more in Q4
RCN brought in more money but reported a larger loss in its fourth quarter of 2007.
Revenue in the most recently completed quarter was $168 million, up 11 percent from the fourth quarter of 2006; that was also an 8 percent sequential increase. Results were boosted by Neon Communications, which RCN bought in November.
RCN had a net loss of $32.4 million, which compares with a net loss of $24.7 million in the like quarter a year ago.
The company attracted approximately 10,000 new customers and 30,000 revenue generating units (RGUs). RCN ended the quarter with approximately 416,000 residential and small- and medium-size business customers, up from 406,000 at the end of 2006.
The percentage of customers opting for RCN's triple play was 38 percent, the company said, and RCN’s digital video penetration rate rose to 69 percent of video customer connections, up from 55 percent in the fourth quarter of 2006.
High-speed data penetration grew to 79 percent of video connections, up from 73 percent a year ago. And RCN reported average revenue per customer of $109, up $3 a customer year-over-year.
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