RCN Reports Fourth Quarter and Full Year 2008 Results

Tuesday, February 24th, 2009
RCN Corp logo

HERNDON, Va. — RCN Corporation (NASDAQ: RCNI), a leading provider of all-digital and high-definition video, high-speed internet, and premium voice services to residential and small-medium business customers, as well as high-capacity transport services to carrier and large enterprise customers, today announced its results for the fourth quarter and full year 2008.

Customers, RGUs and Digital Penetration

RCN’s residential/small-medium business customers increased 3% from last year to 428,000, and total revenue generating units increased 2% from last year to approximately 911,000, with video and data RGUs increasing 2% and 6%, respectively, and voice RGUs decreasing 2%. On a sequential basis, customers remained flat and RGUs decreased by approximately 4,000, primarily as a result of continued declines in landline phone penetration. Bundle rate remained steady at 68%, and digital video penetration rate rose to 87% of video customers from 69% in the fourth quarter of 2007 and 78% in the third quarter of 2008 as the company neared completion of Project Analog Crush(SM) in its metro markets.

Key Metrics (customers & RGUs in thousands):

                                              Three months ended
                       December 31,  September 30,  December 31,
                               2008           2008          2007
                       ------------  -------------  ------------
Video RGUs                      366            366           358
Digital Penetration             87%            78%           69%

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