Mediacom Communications Reports Results for Third Quarter 2007Tuesday, November 6th, 2007
- Revenues increased 7.4% to $328.3 million from $305.6 million in Q3 2006
- Adjusted operating income before depreciation and amortization (“Adjusted OIBDA”) rose 5.4% to $116.7 million
- Operating income decreased 0.9% to $55.4 million
- Net loss of $36.3 million, versus net loss in Q3 2006 of $89.8 million
- Average monthly revenue per basic subscriber increased 12.2% to $81.81
- Total revenue generating units (“RGUs”) rose 5.4% to 2,673,000, with a quarterly net gain of 40,000
MIDDLETOWN, N.Y. — MEDIACOM COMMUNICATIONS CORPORATION (Nasdaq: MCCC) today reported financial results for the three and nine months ended September 30, 2007.
Three Months Ended September 30, 2007 Compared to Three Months Ended September 30, 2006
Revenues rose 7.4% to $328.3 million for the third quarter of 2007, reflecting strong contributions from Mediacom’s data and phone businesses.
- Video revenues increased 2.0% from the third quarter of 2006, primarily due to higher service fees from advanced video products and services and basic video rate increases, offset in part by a lower number of basic subscribers. During the quarter, the Company lost 13,000 basic subscribers, including approximately 3,000 basic subscribers from the sale of a non-strategic cable system, compared to a loss of 6,000 for the same period last year. Average monthly video revenue per basic subscriber grew 6.4% from the third quarter of 2006 to $56.30.
Digital customers grew by 9,000 during the third quarter of 2007, as compared to an increase of 18,000 in the same period last year.
- Data revenues rose 16.0%, primarily due to a 16.9% year-over-year increase in data customers. Data customers grew by 23,000 during the third quarter of 2007, as compared to a gain of 28,000 in the same period last year.
- Telephone revenues rose 83.8%, primarily due to a 98.8% year-over-year increase in phone customers. The Company’s phone customers grew by 21,000 during the third quarter of 2007, as compared to a gain of 17,000 in the same period last year. As of September 30, 2007, Mediacom Phone was marketed to approximately 2.5 million of the Company’s 2.84 million estimated homes passed.
- Advertising revenues rose 12.1%, in large part due to a fourteen week broadcast sales period this quarter, as compared to a thirteen week period in the prior year.
Total operating costs grew 8.6% primarily due to (i) recurring expenses related to growth in the Company’s phone and data services, (ii) increases in programming unit costs, and (iii) greater marketing, bad debt and telecommunications expenses.
As a result, Adjusted OIBDA increased by 5.4%. Operating income decreased by 0.9% due primarily to higher depreciation and amortization, largely offset by the increase in Adjusted OIBDA.
Summary Operating Statistics (Unaudited) Actual Actual Actual September June 30, September 30, 2007 30, 2007 2006 ---------- ---------- ---------- Estimated homes passed 2,839,000 2,835,000 2,817,000 Video Basic subscribers 1,331,000 1,344,000 1,394,000 Quarterly net basic subscriber losses (13,000) (18,000) (6,000) Digital customers 541,000 532,000 514,000 Quarterly net digital customer additions 9,000 2,000 18,000 Digital penetration 40.6% 39.6% 36.9%