Multi-service operator Mediacom has reported a 7.4% increase in third quarter revenues. The company’s total sales for the quarter ending September 30, 2007 was $328.25m compared with $305.55m for the prior year period. Mediacom also posted a net loss of $36.35m against a $89.83m million loss last year.
The revenue from its video services increased to $225.89m compared to $221.38m last year. Data, Phone and Advertising were reported as $70.52m, $14.44m and $17.39m, respectively, for the quarter compared to $60.80m, $7.85m and $15.51m, respectively, last year. The quarterly operating income for the third quarter in 2007 was $55.44m, compared to $55.96m in the same quarter last year. It also reported diluted loss per share of $0.34 as against $0.82 last year.
Mediacom also lowered its guidance for fiscal 2007 to the range of 6.5% to 7.0% as against 7.0% to 8.0% declared earlier. The company expects a capital expenditure of $225m, an increase from $215m declared earlier.
Mediacom said it lost 13,000 basic subscribers in the quarter, including about 3,000 resulting from the sale of cable system. However, it has added 40,000 revenue generating units (RGU), a gain of 5.4%.
More profitable double- and triple-play customers are replacing video-only subscribers, as reflected by the dramatic 12% increase in year-over-year total ARPU. We expect these favorable trends to continue, as our advanced video, data and phone services become more widely accepted in our markets, said Rocco B Commisso, chairman and chief executive at Mediacom.
Mediacom signed on 9,000 new digital video subscriptions as against 18,000 a year earlier. The number of high-speed internet additions also slowed as Mediacom gained only 23,000 subscriptions in the quarter versus 28,000 in the year-ago period. However, revenue in the telephone category jumped 83.8% to $14.4m as 21,000 new voice customers signed up in this quarter, up from 17,000 last year.
Mediacom’s competitor Qwest reported a decline of 1.5% in its third quarter revenues. It reported sales of $3.43 billion for the quarter ending September 30, 2007. Its net income increased to $2.06 billion as against $194m for the same quarter a year ago.
Source: ComputerWire daily updates