Mediacom prospers with RGU growth
Mediacom Communications’ Q1 financials were floated by some of the same trends that lifted the first quarters of Cablevision, Charter and Comcast: RGU growth (largely broadband and VoIP) and a revival of the advertising market.
The company reported an increase of 57,000 revenue-generating units (RGUs); it added 21,000 digital customers, 26,000 broadband subscriptions and 13,000 VoIP subscriptions, while losing 4,000 basic subs.
Advertising revenues were 13.1 percent higher due to increased local and, to a lesser extent, national advertising sales, in part due to a rebound in automotive advertising sales, the company said.
Revenue was $368.7 million, a 3.1 percent increase. Net income was more than halved, however, from $22.4 million in the first quarter of 2009 to $8.5 million in the recently completed first quarter. Mediacom explained those year-over-year results were distorted largely by a $13 million one-time gain from the sale of assets a year ago.
Capex in the quarter was $57.9 million, compared with $54.8 million during the prior-year period. The increase largely reflected greater investments in the internal phone platform and, to a much lesser extent, high-speed data delivery system, Mediacom reported. This was offset in part by reduced outlays for customer premises equipment and network improvements and extensions.