Despite subscriber losses, Suddenlink’s revenues grow 5.6% in Q2
Suddenlink Communications saw subscriber defections from both its video and data services, but still managed to post second quarter revenues that were higher than the same quarter a year ago.
Suddenlink, the nation’s seventh-largest cable operator, reported second quarter revenues of $554.0 million this morning, which were a 5.6 percent increase over the same quarter a year ago.
On the subscriber front, Suddenlink lost 22.900 basic video customers, 8,500 digital video customers and 9,000 data customers in the second quarter while residential phone subscribers increased by 8,200.
In the first quarter Suddenlink added about 700 basic video subscribers, approximately 15,600 digital video customers, about 24,100 broadband subscribers, and about 5,800 telephony subscribers.
Adjusted EBITDA increased 6.8 percent to $211.6 million while free cash flow rose 31.8 percent to $44.2 million.
Suddenlink had a net loss of $27.2 million compared to a net income of $28.6 million a year go. Suddenlink’s capital expenditures were down slightly from $95.4 million a year ago to $94.9 million.
Total average monthly revenue per basic video customer (ARPU) for the second quarter was $150.93, an increase of 8.7 percent compared to the second quarter of the prior year.
Suddenlink’s revenue generating units (RGUs) were 3,536,500, an increase of 63,100, or 1.8 percent.
Commercial revenue grew 16.2 percent versus the second quarter of 2012, including 21.9 percent year-over-year growth in Suddenlink’s commercial high-speed data, on-net and off-net carrier and telephone revenues on a combined basis.
"We continued to generate strong financial results in the second quarter, with pro forma year-over-year revenue growth of 5.6 percent, adjusted EBITDA growth before non-recurring expenses of 6.8 percent, and free cash flow growth of 31.8 percent," said Suddenlink Chairman and CEO Jerry Kent. "These results put us in excellent position to make the type of targeted, strategic investments that we believe will continue to drive our growth and success."