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Data drives Mediacom's Q3 revenues

Mon, 11/08/2010 - 7:20am
Mike Robuck

Mediacom Communications, the nation's eighth-largest cable operator, saw its third-quarter revenues increase by 3 percent, thanks largely to growth in its high-speed data subscribers.

Mediacom reported revenue of $374.3 million, up from $363 million in the prior year period, this morning for the quarter that ended Sept. 30. In addition to data, Mediacom said advertising and phone revenues also contributed to the increase in revenues. Mediacom's average total monthly revenue per basic subscriber rose 8.4 percent to $103.17.

Mediacom lost 13,000 basic video subscribers in the quarter, compared with a loss of 19,000 in the same quarter a year ago. Video revenues declined 1.1 percent, primarily due to the lower number of basic subscribers, but the losses were partially offset by video rate increases and higher revenues from its digital video, digital video recorder and high-definition television services.

Mediacom added 12,000 digital customers to end the quarter with 717,000, a 60 percent penetration of basic subscribers. Year-over-year, Mediacom gained 52,000 digital customers to post a 7.8 percent growth rate.

High-speed data revenues rose 9.7 percent, mainly due to a year-over-year gain of 62,000 high-speed data customers, or 8.1 percent. The company gained 13,000 high-speed data customers to end the quarter with 827,000, a 29.4 percent penetration of estimated homes passed.

Phone revenues grew 7.5 percent, largely due to a year-over-year increase of 50,000 phone customers, or 18.2 percent, offset in part by higher levels of discounted pricing. Mediacom added 7,000 phone customers to end the quarter with 324,000, a 12.2 percent penetration of estimated marketable phone homes.

Advertising revenues rose 19 percent, primarily due to increased national and local sales, with significant contributions from the political and automotive categories.

Mediacom's net loss was $4 million, or 6 cents per basic share, compared with a net loss of $10 million, or 15 cents per basic share, in the prior-year period. Mediacom said the net loss in the current period reflected $51.4 million of interest expense, net a $22.9 million loss on derivatives and a $2.7 million benefit from income taxes.

Capital expenditures were $58.3 million for the three months ended Sept. 30, compared with $58 million during the prior-year period. Mediacom said its capital spending largely reflected greater investments in scalable infrastructure, primarily for its internal phone platform, and increased purchases of customer premise equipment, mostly offset by reduced outlays for network improvements and the enterprise networks business.

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