RCN reported increased revenue in its third quarter, and though it still can’t claim to be profitable, it is getting gradually closer. Instead, the company touted its growth, its liquidity, and achieving the $50 million EBITDA mark for the first time in its history.
The company said that despite the economy it will continue to pursue growth opportunities, and it plans to keep capital spending steady.
RCN’s third-quarter revenue was $187 million, up 20 percent from its third quarter a year ago, and up 1 percent from the immediately prior quarter. The company more than halved its loss from $35 million in the third quarter of 2007 to $14.7 million in the third quarter just completed.
The company added approximately 15,000 new customers and 31,000 revenue-generating units, for a total of approximately 428,000 residential/small- to medium-size business customers.
RCN CEO Peter D. Aquino said: “Project Analog Crush, enhanced by the FCC's grant of our set-top box waiver, brings our video product to the leading edge as one of the first all-digital offerings and has been expanded to all 5 metro markets with New York, Washington D.C., and Philadelphia now launched. Reclaiming this analog spectrum allows RCN to provide over 75 HD channels, introduce new products such as our RCN Global Passport international tier planned to launch shortly, and frees up capacity for future high-speed data enhancements. Our investment in RCN Metro also continues to pay off with strong revenue growth and margin expansion.”
Looking ahead, RCN bumped up its projected revenue range from $730 million to $740 million, to $738 million to $742 million, while its new prediction of EBITDA is $191 million to $195 million, the lower end of its earlier projection of $190 million to $200 million. It’s holding steady on a capex projection of approximately $125 million.
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