RCN posts free cash flow of $11M in Q3
RCN Corp. released its third-quarter results today, which included free cash flow of $11 million in the quarter, compared with a negative $2 million in the same quarter a year ago and $10 million in the second quarter of this year.
RCN’s total revenue of $192 million saw a 3 percent increase from the $187 million it posted in the same quarter a year ago but was flat when compared with the same amount in the second quarter of this year.
RCN’s net loss was $6 million in the third quarter of 2009, compared with $15 million in the third quarter of 2008 and $9 million in Q2 2009.
"We are executing very well against our 2009 objectives, building free cash flow to $29 million year-to-date, while still fueling our business for future growth," said RCN President and CEO Peter Aquino. "We have successfully managed through nearly a full year of economic uncertainty and stayed on pace to expand margins, invest in product development and make process improvements.
“In our residential business, Project Analog Crush is now complete in all of our metro markets, and we are midway through our Lehigh Valley Crush. By year end, RCN will be the largest MSO in the country to be 100 percent digital, providing over 100 HD channels, an expansive VOD library and a robust International tier, with channel capacity for future growth.”
RCN’s revenue in its Residential/Small-Medium Business division was $144 million, which was flat compared with $144 million in the third quarter of 2008 and was a decrease of 1 percent from $145 million in the second quarter of 2009. RCN said its year-over-year revenue comparisons reflected the addition of 2,000 customers and flat average revenue per customer of $111.
RCN’s Metro Optical Networks segment revenue of $48 million increased 11 percent from $43 million in the third quarter of 2008 and increased 2 percent from $47 million in the second quarter, driven primarily by continued strength in transport services, as well as growth in data and Internet services.
“In the RCN Metro segment, we continue to capture demand for high-capacity bandwidth from large carrier and enterprise customers, leveraging our position as a premier regional service provider with best-in-class Metro Ethernet and on-net fiber connectivity in five of the top-10 metro markets in the country," Aquino said.