Suddenlink video customers down 33,800 in 2013Tuesday, March 11th, 2014
ST. LOUIS — Cequel Communications Holdings I, LLC (“Cequel,” and together with its subsidiaries, the “Company” or “Suddenlink”) today reported financial and operating results for the fourth quarter and full year 2013.
Fourth Quarter 2013 Compared to Fourth Quarter 2012
Video service revenues increased 2.3% due primarily to video rate increases, higher broadcast retransmission and franchise fee revenue and customer growth in our digital and advanced video services, including converter rental revenue for high-definition and DVR capable digital converters. Offsetting this growth, in part, were the year-over-year basic video customer losses and the impact of digital customers purchasing fewer digital tiers of service on average.
Full-Year 2013 Compared to Full-Year 2012
Video service revenues increased 2.2%, due primarily to video rate increases, higher broadcast retransmission revenue and customer growth in our digital and advanced video services, including converter rental revenues for high-definition and DVR capable digital converters, offset in part by the loss of basic video customers and digital customers purchasing fewer digital tiers of service.
Key Operating Metrics
Basic video customers decreased by approximately 8,600 customers while digital video customers increased by approximately 10,200 customers during the fourth quarter of 2013. During 2013, basic video customers decreased by approximately 33,800, or 2.8%, while digital video customers increased by approximately 31,200, or 3.7%. Estimated basic penetration at December 31, 2013, was 38.2% of estimated homes passed. Digital penetration to basic customers was 73.8%.
Summary Operating Statistics (unaudited):
Approximate as of: ------------------------------- Dec. 31, Sept. 30, Dec. 31, 2013 2013 2012 --------- --------- --------- Revenue Generating Units (RGU): Basic video customers (a) 1,177,400 1,186,000 1,211,200 Digital video customers (b) 868,700 858,500 837,500 Quarterly net customer additions (losses): Basic video customers (8,600) (3,000) (19,100) Digital video customers 10,200 13,900 4,900
(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 in use.