Data, phone, digital video drive Suddenlink's Q1 revenue gains
Suddenlink Communications' first-quarter year-over-year revenues increased 8.2 percent to $446.2 million, due in large part to the addition of voice, data and digital video subscribers.
With this morning's earnings report by parent company Cequel Communications, Suddenlink followed the cable industry trend of losing basic video subscribers while adding more voice, data and digital video subscribers, as well as incremental revenues from VOD and DVR services.
During the 12 months ended March 31, Suddenlink lost 32,300 basic video customers, while digital video customers grew by 102,100 over the same period.
Video revenues increased 2.4 percent, primarily due to basic video rate increases, increased premium and VOD service revenues, and customer growth in Suddenlink's digital and advanced video services.
Residential and commercial high-speed Internet customers grew by 71,400 and 3,400, respectively, over the past 12 months. Data revenues increased 12.6 percent, due to an increase in residential high-speed Internet customers, the impact of rate increases, and growth in the company's commercial high-speed Internet services to small- and medium-size businesses.
Residential and commercial telephone subscribers grew by approximately 76,000 and 6,200, respectively, with revenues increasing 23 percent.
Suddenlink's advertising revenues increased 1.3 percent, thanks to higher local and national automotive ad sales revenue.
Revenue-generating units increased 80,200 for the first quarter and 217,200 on a pro forma basis year-over-year, which was a 7.4 percent gain from the same quarter a year ago. Pro forma residential customer relationships increased 17,400 in the first quarter of 2011. ?
Total average monthly revenue per basic video customer for the first quarter was $122.51, an increase of 11 percent compared with pro forma average monthly revenue per basic video customer for the first quarter of the prior year.
"This was our eighteenth consecutive quarter of pro forma revenue growth," said Suddenlink Chairman and CEO Jerry Kent. "We grew in every segment of revenue-generating units, and it was our second-best quarter for RGU gains in our history. Our efforts to provide a superior level of customer care are being rewarded."