Suddenlink posts 7.7% increase in Q2 revenues
On Friday, Suddenlink's parent company, Cequel Communications, reported that the cable operator saw a 7.7 percent increase year-over-year in its second-quarter revenues that ended June 30.
Suddenlink's second-quarter revenues totaled $420.7 million, while its revenues for the first six months grew 7.3 percent to $831.8 million when compared with the same six months a year ago.
Suddenlink followed in the steps of other recent earnings reports by cable operators when it said the increased revenues were due to a rebound in advertising, as well as the addition of digital video, phone and Internet subscribers.
Like Charter, Comcast and Time Warner Cable, Suddenlink saw a drop in its basic video customers, which totaled 18,800 in the second quarter, compared with a loss of 21,500 in the same quarter a year ago. (Charter lost 76,000 basic subscribers, Time Warner Cable 111,000 and Comcast 265,000.
"We are excited that our second-quarter growth built upon the strong performance from the first quarter," said Suddenlink Chairman and CEO Jerry Kent. "We believe the momentum from this strong start validates the strategic investments we are making in our employees, technologies and services to further enhance our customers' experiences."
On the digital video front, Suddenlink added 19,700 new subscribers in the quarter, compared with 2,900 a year ago. Overall, the nation's seventh-largest cable operator saw its video revenues increase by 2.4 percent in the second quarter.
Total average monthly revenue per basic video customer for the second quarter was $113.50, which was an increase of 11 percent compared with the second quarter of the prior year.
Suddenlink's residential data customers grew by 3,100 subscribers, compared with the addition of 1,700 a year ago. Overall, data revenues increased 10 percent due to growth in residential and commercial subscribers.
Residential voice customers increased by 20,600, but that number was slightly down from last year's second quarter mark of 20,900. Telephone revenues increased by 29 percent in the second quarter, which included gains related to small- and medium-size businesses. Suddenlink said its telephone revenue growth was partially offset by average revenue per unit declines in its residential phone offerings due to bundling discounts.
Advertising revenues increased 11.6 percent, largely due to increases in national advertising, primarily from political and automotive advertising.
Other revenues increased 14 percent due to, among other things, increased converter rental charges for high-definition and DVR-capable digital converters; increased home shopping revenues; increased home networking revenues; and higher franchise, regulatory and administrative fees associated with the underlying growth of the business.
Operating costs and expenses increased 5.6 percent, primarily due to higher programming costs, increased telephone service costs, and increased net compensation and employee-related expenses.
Revenue-generating units (RGUs) increased 24,600 for the second quarter and 219,100 year-over-year, for an 8 percent annual gain.