Knology digs its way toward profitability
Between an acquisition of a smaller competitor in its fourth quarter and the success of business services, Knology increased revenues in 2009, helping the company achieve a significant reduction of its annual loss.
Knology’s revenue increased to $107.1 million for the fourth quarter of 2009, and to $425.6 million for the full year, representing growth of 3.5 percent and 3.7 percent, respectively.
The company earned $866,000 in its fourth quarter, but for its fiscal year 2009 ended up recording a loss of $3.4 million, almost one-quarter of its FY ‘08 loss of $12.1 million. The company said that absent some one-time charges, it would have posted a profit for the year.
The company added approximately 8,400 connections when it acquired PCL Cable, a purchase that closed during the fourth quarter. Between that acquisition and organic subscriber growth, Knology’s total new connections grew by 11,951 in the fourth quarter and 15,863 for the full year. The annual number broke down as 1,231 video connections, 2,651 voice connections and 11,981 data connections.
Knology, meanwhile, added more than 4,400 business connections to end the year at more than 105,000, or approximately 15 percent of total connections.
The company reported that average monthly revenue per connection was $51.94 for the fourth quarter of 2009, compared with $51.96 in the previous quarter and $51.23 in the fourth quarter of 2008.