During last week’s fourth-quarter and year-end earnings call, Knology reported that its revenue in the quarter increased 41 percent, to $94.8 million, while its full-year 2007 revenue increased 34.2 percent, to $347.7 million. The cash flow and quarterly revenue increases were new highs for the company.
In the fourth quarter, Knology added 3,261 net connections to finish the year with a total of 180,347. The West Point, Ga.-based company added 49,041 video connections, 73,936 voice connections and 57,370 broadband connections last year.
Average monthly revenue per connection was $49.17 for the fourth quarter, compared with $48.87 in the previous quarter and $48.42 in the fourth quarter of 2006. Average monthly revenue per connection by product for the fourth quarter was $57.19 for video, $46.70 for voice and $39.54 for data.
Video revenue continued to benefit from the success the company is experiencing with the sale of advanced video high-definition (HD) and digital video recorder (DVR) services. Knology experienced significant growth in the deployment of the HD and DVR applications year-over-year with a 78.8 percent increase, resulting in approximately 52,000 advanced boxes deployed as of year-end.
Average monthly connection churn during the fourth quarter improved to 2.5 percent, compared with 2.6 percent for the same period a year ago and 2.8 percent in the previous quarter.
For the full-year 2007, Knology reported a net loss attributable to common stockholders of $43.9 million, or $ 1.25 per share, compared with a net loss of $39.5 million, or $1.41 per share, in 2006. The net loss attributable to common stockholders for 2007 included a loss of $27.4 million on the early extinguishment of debt and a gain of $8.3 million on the sale of discontinued operations.
Knology purchased Graceba Total Communications for $75 million in November (story here) The deal was completed in January.
In 2008, Knology is targeting revenue from $410 million to $420 million, which would represent a 19 percent growth, and cash flow in the range of $140 million to $144 million. The cash flow projection would represent a 33 percent increase for the company.
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