Buoyed by advanced service subscription growth, Cox Communications reported a second quarter profit of $117.7 million (19 cents per share), compared to a loss of $516.2 million (86 cents per share) in the year-ago period. Revenues for the quarter jumped 14 percent to $1.4 billion.
Cox said it added 237,722 advanced service revenue generating units (RGUs) in the period, adding that it's on track to achieve guidance of between 1 million and 1.1 million RGU net additions by year-end. Cox ended the quarter with 10.7 million RGUs, up 2 percent for the period.
By service type, Cox added 56,170 digital phone customers, extending its total to 800,000, and representing a year-over-year increase of 45 percent. Cox also added 69,100 digital subs, giving it 1.9 million.
But the big star for Cox was high-speed Internet (HSI). Cox added 112,452 cable modem customers in the quarter, extending that total to 1.7 million. Year-over-year, Cox's cable modem sub total leapt 50 percent.
Cox also managed to increase its number of basic video subs, which rose 0.5 percent to 6.3 million.
Touting its strategy to bundle voice, video and data services, the MSO said nearly 33 percent of its customers, or 1.9 million, take multiple services.
Commercial broadband services also contributed to a Q2 jump in revenue. The Cox Business Services unit generated revenue of $68.1 million, up 31 percent from a year ago.
Although the MSO's weekly telephony additions (4,300) were lower than the estimates of Salomon Smith Barney's forecast of 4,500, analyst Niraj Gupta wrote in a research note that Cox's HSI additions exceeded that of Verizon, "which has four times the footprint of Cox."
"We believe Cox is the best competitively positioned cable MSO in the industry and is positioned to deliver strong results for the next several years," Gupta wrote.