Cable One video PSUs down 5,800 in 1Q 2019

PHOENIX — Cable One, Inc. (NYSE: CABO) (the “Company” or “Cable ONE”) today reported financial and operating results for the quarter ended March 31, 2019.

The company ended the quarter with 320,611 Residential and Business Video PSUs, down 5,812 in the quarter and down 30,263 (-8.6%) year-on-year.

Operating Statistics (from quarterly reports)

                       1Q 2019  4Q 2018  3Q 2018  2Q 2018  1Q 2018
                       -------  -------  -------  -------  -------
Video PSUs(1)            
 Residential           305,030  310,475  312,564  323,514  334,035
 Business               15,581   15,948   16,357   16,598   16,839
Total                  320,611  326,423  328,921  340,112  350,874

Video PSUs - QoQ Net Ads            
 Residential            -5,445   -2,089  -10,950  -10,521  -12,677
 Business                 -367     -409     -241     -241     -337
Total                   -5,812   -2,498  -11,191  -10,762  -13,014

Video PSUs - YoY Net Ads            
 Residential           -29,005  -36,237  -41,296  -43,302   40,309
 Business               -1,258   -1,228     -496     -590    3,378
Total                  -30,263  -37,465  -41,792  -43,892   43,687

Video PSUs - YoY Net Ads (%)            
 Residential             -8.7%  -10.5%    -11.7%   -11.8%    13.7%
 Business                -7.5%   -7.1%     -2.9%    -3.4%    25.1%
 Total                   -8.6%  -10.3%    -11.3%   -11.4%    14.2%

Penetration            
 Video                    15.1    15.6      15.7     16.3     16.9
ARPU            
 Residential video(2)    90.54    88.2     88.44    88.55    86.92

(1) During the first quarter of 2019, the number of residential video PSUs increased by approximately 7,150 as a result of conforming the methodology for counting residential video PSUs following the NewWave billing system conversion. NewWave’s legacy billing system counted residential bulk multi-dwelling accounts at the property level, while the Company’s billing system counts residential bulk multi-dwelling accounts for video PSUs at the individual unit level.
(2) Average monthly revenue per unit values represent the applicable quarterly residential service revenues (excluding installation and activation fees) divided by the corresponding average of the number of PSUs at the beginning and end of each period, divided by three, except that for any new PSUs added as a result of an acquisition occurring during the reporting period, the associated average monthly revenue per unit values represent the applicable residential service revenues (excluding installation and activation fees) divided by the pro-rated number of PSUs during such period.

In January 2019, the Company completed the acquisition of Clearwave Communications, a facilities-based service provider that owns and operates a high-capacity fiber network offering dense regional coverage in Southern Illinois (“Clearwave”).
Other Highlights:

In April 2019, the Company announced that it had entered into an agreement with Fidelity Communications Co. to acquire its data, video and voice business and certain related assets (collectively, “Fidelity”) for $525.9 million in cash, subject to customary post-closing adjustments.