Suddenlink digital TV customers down 26,300 in 4Q 2014
Tuesday, February 24th, 2015ST. LOUIS — Cequel Communications Holdings I, LLC (“Cequel,” and together with its subsidiaries, the “Company” or “Suddenlink”) today reported a strong quarter of performance, including year-over-year growth in revenue, Adjusted EBITDA, customer relationships and ARPU.
Fourth Quarter 2014 Compared to Fourth Quarter 2013
Video service revenue decreased 1.2% due primarily to basic video customer losses in the trailing twelve months; digital customers purchasing fewer digital tiers of service on average; and decreased premium and pay-per-view revenue. Offsetting this decline, in part, was the impact of video rate increases; higher broadcast retransmission revenue; and customer growth in our digital and advanced video services, including converter rental revenue for HDTV and DVR capable digital converters.
Full Year 2014 Compared to Full Year 2013
Video service revenue increased 1.0% due primarily to the impact of video rate increases; higher broadcast retransmission revenue; and customer growth in our digital and advanced video services, including converter rental revenue for HDTV and DVR capable digital converters. Offsetting this growth, in part, was the impact of basic video customer losses in the trailing twelve months; digital customers purchasing fewer digital tiers of service on average; and decreased premium and pay-per-view revenue.
Key Operating Metrics
Basic video customers decreased by approximately 34,800 customers and digital video customers decreased by approximately 26,300 customers during the fourth quarter of 2014. During 2014, basic video customers decreased 4.1%. Digital video customers decreased 0.1% in 2014. Estimated basic penetration at December 31, 2014, was 36.0% of estimated homes passed. Digital penetration to basic video customers was 76.6%.
Summary Operating Statistics (unaudited):
Approximate as of: ------------------------------- Dec 31, Sep 30, Dec 31, 2014 2014 2013 --------- --------- --------- Revenue Generating Units (RGU): Basic video customers (a) 1,138,400 1,171,000 1,177,400 Pro Forma (c) 1,173,200 1,187,500 Digital video customers (b) 871,900 897,500 868,700 Pro Forma (c) 898,200 872,900 Quarterly net customer additions (losses): Basic video customers (32,600) 2,200 (8,600) Pro Forma (c) (34,800) 2,200 (8,700) Digital video customers (25,600) 16,000 10,200 Pro Forma (c) (26,300) 15,900 10,700
(a) Basic video customers include all residential customers who receive video cable services. Also included are commercial or multi-dwelling accounts that are converted to equivalent basic units (“EBUs”) by dividing the total bulk billed basic revenues of a particular system by the most prevalent retail rate paid by non-bulk basic customers in that market for a comparable level of service. This conversion method is consistent with methodology used in determining costs paid to programmers. Our methodology of calculating the number of basic video customers may not be identical to those used by other companies offering similar services.
(b) Digital video customers include all basic video customers that have one or more digital set-top boxes or cable cards deployed.
(c) Pro forma to include the impact of the cable systems acquired from Northland on January 2, 2014, the Nevada cable systems acquired on October 1, 2014, and the Bloomingdale, OH and Knoxville, OH systems sold on December 1, 2014, where applicable.
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