Suddenlink increases RGUs, narrows losses
Cequel Communications, better known by the name of its subsidiary, Suddenlink, reported first-quarter revenue was up 6.8 percent to $411.1 million compared with the prior year.
Results were pushed up largely by subscriber growth and a revival in advertising revenue, common phenomena for most of the MSOs that have reported their earnings thus far.
The increases in subs and ad sales helped the company narrow its loss from $9.6 million last year to $1.8 million in the Q1 just ended.
Revenue-generating units (RGUs) increased 92,000 for the first quarter, which Suddenlink said was the greatest quarterly net RGU increase in its history.
Bundled customers represented 55.5 percent of total customer relationships, an increase from 49 percent one year ago, primarily from growth in triple-play customer relationships, which represented 17.8 percent of total customer relationships at March 31.
“We are very pleased with the company’s strong performance in the first quarter, including our record growth in revenue-generating units,” said Suddenlink Chairman and CEO Jerry Kent. “We believe these results validate the strategic investments we’re making in customer care, products and services, and tools and training for our employees.”
Suddenlink said it gained approximately 4,800 basic video customers during the first quarter of 2010, compared with a gain of 9,300 basic customers during the first quarter of 2009. Digital video customers increased by 30,600 in Q1, compared with an increase of 15,400 during the same period in the prior year.
High-speed Internet revenues increased 8.1 percent due to an increase in residential high-speed Internet customers and growth in commercial high-speed Internet services to small- and medium-size businesses. Residential high-speed Internet customers grew by 34,800 during the first quarter, as compared with a gain of 31,300 during the first quarter of 2009.