Mediacom turns in profitable Q2
Mediacom reported having netted 42,000 new revenue-generating units (RGUs) in its second quarter, more than double the RGU additions in the prior-year period.
That was despite losing 5,000 basic video subscribers. That loss was far fewer than the drop of 18,000 in Q2 ’07.
Digital customers grew by 15,000, compared with an increase of 2,000 in the prior-year period, ending the quarter with 599,000 customers. As of June 30, 32.2 percent of digital customers were taking digital video recorder (DVR) and/or high-definition television (HDTV) services, up from 26.5 percent at the end of the prior-year period.
High-speed data revenues rose 15.4 percent, primarily due to a 14.5 percent year-over-year increase in unit growth. During the quarter, high-speed data customers grew by 14,000, as compared with a gain of 13,000 in the prior-year period, ending the quarter with 702,000 customers.
ARPU was up 10 percent, to $88.02.
Second-quarter revenue increased 7.6 percent, to $349.5 million, compared with results a year ago. Net profit was $20.9 million, a solid reversal from a Q2 ’07 loss of $6.6 million.
“We delivered another quarter of solid results despite a flat advertising sales market," said Rocco B. Commisso, Mediacom's chairman and CEO. “Our RGU growth was a record for any second quarter in the company's history, due in part to the lowest basic subscriber loss for any comparable period since 2001. Given our performance thus far, together with our outlook for the balance of 2008, we feel comfortable raising external guidance for the second time this year.”
The company is now expecting revenue growth between 7 percent and 8 percent; projections had been between 6.5 percent and 7.5 percent. Capital expenditure guidance is unchanged at approximately $275 million.
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