Earnings roundup: RCN and SureWest
Cable overbuilder RCN Corp. reported 2002 revenues of $457.4 million, up 14 percent from $405.6 million in 2001, but said losses rose to $1.5 billion ($14.78 per share), versus $836.5 million ($8.89 per share) in the year earlier.
For the fourth quarter, RCN posted revenues of $117.2 million, up 7 percent from the year-ago period, and a net loss of $158.1 million, narrowed from a loss of $210 million in Q4 2001.
At year-end, RCN had 1.4 million "marketable homes," with 469,490 customers. Of that figure, 143,660, or 31 percent, took one of the company's "Resilink" service bundles.
SureWest Communications reported full-year 2002 revenues of $188.9 million, up 13.7 percent, while net income rose to $11.2 million (76 cents per share), compared to $10.3 million (67 cents per share) in 2001.
In the fourth quarter, SureWest had revenues of $48.8 million, an increase of 7.7 percent from the year-ago quarter, and posted a profit of $85,000 (1 cent per share), down from $2.4 million (16 cents per share) in the same-year period. SureWest attributed a portion of that difference to expenses tied to its digital cable service in Sacramento. SureWest acquired the assets of bankrupt overbuilder Winfirst last summer for about $12 million.
At year-end, SureWest said it had 5,650 digital cable subs, though the average revenue per unit (ARPU) dropped to $104.12 in the fourth quarter from $105.23 in the previous period, primarily due to a temporary reduction in VOD usage as SureWest was in the process of replacing its former VOD content provider Intertainer with TVN Entertainment Corp.