Suddenlink video subscribers down 18,700 in 2Q 2014

Friday, August 8th, 2014 
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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 second quarter of 2014.

Second Quarter 2014 Compared to Second Quarter 2013

Video service revenues increased 1.9% due primarily to video rate increases; higher broadcast retransmission 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, 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 revenues.

Key Operating Metrics

Basic video customers decreased by approximately 18,700 customers during the second quarter of 2014, an improvement compared to a loss of 23,100 basic video customers in the second quarter of 2013. Digital video customers decreased by approximately 6,500 customers during the second quarter of 2014, an improvement compared to a loss of 8,200 digital video customers in the second quarter of 2013. During the trailing twelve months, basic video customers decreased 2.4% and digital video customers grew 4.1%. Estimated basic penetration at June 30, 2014, was 37.3% of estimated homes passed. Digital penetration to basic customers was 75.4%.

Summary Operating Statistics (unaudited):

                                                                    Approximate as of:
                                              Jun 30,    Mar 31,    Dec 31,    Jun 30,
                                                 2014       2014       2013       2013
                                            ---------  ---------  ---------  ---------
Revenue Generating Units (RGU):            
 Basic video customers (a)                  1,168,800  1,187,500  1,177,400  1,189,000  
 Digital video customers (b)                  881,500    888,000    868,700    844,600  

Quarterly net customer additions (losses):
 Basic video customers                       (18,700)     10,100    (8,600)   (22,900)
 Digital video customers                      (6,500)     19,300     10,200    (8,500)

(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.