Cable Operators

Mediacom Posts Solid 2Q

8/05/2004 8:46 AM Eastern

Mediacom Communications Corp. said Thursday that net income for the second quarter of 2004 was $30.1 million, or $0.25 per share, versus a net loss of $38.2 million ($0.32) in the prior-year period.

The MSO’s revenues rose 6.1% to $267.6 million from $252.2 million in the second quarter of 2003.

Operating income before depreciation and amortization (OIBDA) rose 3.5% to $108.4 million from $104.7 million in the year-ago period, and operating income jumped 147.3% to $52.9 million from $21.4 million.

Mediacom saw a 4.4% decline in basic subscribers, from 1.56 million to 1.491 million. Digital customers also slipped, by 12,000 to 373,000.

High-speed-data customers soared from 234,000 to 327,000. The MSO added 25,000 data customers during the period, compared with 20,000 in the year-ago period, helped by the limited launch of its 128-kilobit-per-second data product.

Mediacom said advertising revenues increased 16.2%, primarily due to bringing in-house certain markets previously managed by third parties and, to a lesser extent, from improved local advertising sales.

“Continued growth from our data and advertising businesses led the way to revenue and OIBDA growth in the second quarter relative to last year, notwithstanding basic-subscriber losses in this seasonally weak period," chairman and CEO Rocco B. Commisso said in a prepared statement.

“At the same time, largely as a result of the completion of our network-upgrade program, unlevered free cash flow nearly doubled year-over-year, reflecting a margin of 25.1% of revenues,” he added. “This generated free cash flow per share of $0.17, compared with negative free cash flow per share of $0.12 in the second quarter of 2003.”

March