Knology rolls to Q3 profit
Aided by its recent acquisition of Sunflower Broadband, Knology posted a third-quarter profit.
With a non-cash gain/charge related to the accounting treatment of the company's interest rate swaps, Knology had a net income of $5.9 million, or 16 cents per share, compared with a net loss of $3.3 million, or 9 cents per share, the third quarter a year ago.
Knology's third-quarter revenue finished at $113 million, compared with revenue of $106 million in the third quarter of 2009 and $113 million in the preceding quarter.
West Point, Ga.-based Knology's total connections increased by 1,759 during the third quarter. By the end of the third quarter on Sept. 30, total connections were 700,476, a 2.7 percent increase compared with one year ago.
Voice and data connections increased 892 and 1,437, respectively, while business connections increased 333 during the period to 107,388 connections, compared with 105,243 business connections one year ago.
On the video side, Knology's video connections decreased by 570 subscribers.
Knology's average monthly revenue per connection was $53.76, which represented an increase from $51.96 for the third quarter of 2009. Average monthly connection churn improved to 2.7 percent, compared with churn of 2.8 percent for the same period one year ago.
Prior to the end of the third quarter, Knology closed on its $165 million purchase of Lawrence, Kan.-based Sunflower Broadband.
"The third quarter was a very busy period for the company," said Rodger L. Johnson, chairman and chief executive officer of Knology. "We are pleased with the Sunflower acquisition and the scale that it adds to the company. We are impressed with the Sunflower team and welcome them to the Knology family. Our business continues to perform well in a challenging economic environment, and we continue to be excited about our edge-out investment opportunity as well as the wireless backhaul activity."