News

Cox Reports Strong Sales

10/31/1999 7:00 PM Eastern

Cox Communications Inc. reported its "strongest sales
yet of our advanced communications services" during the third quarter ending Sept.
30, the MSO said last Wednesday.

Cox's third-quarter revenue was $526.6 million, up 14
percent over the 1998 third-quarter figure. Operating cash flow increased 10 percent to
$196.5 million.

The earnings results were in line with expectations, SG
Cowen Securities Corp. analyst Gary Farber wrote last Thursday morning, restating a
"buy" rating for the company's stock. Farber cited Cox's double-digit cash-flow
growth, strong customer service, solid subscriber growth and plant upgrades that allow the
MSO to offer a bundled package of video, voice and data.

Basic-cable subscribers numbered 3.8 million at the end of
the third quarter, excluding recently acquired customers from Cox's acquisition of TCA
Cable TV Inc., marking a 2.8 percent internal increase over last year.

As of Sept. 30, "Cox Digital TV" had 201,752
customers, and the digital-video service passed nearly 4 million homes.

Cox had 140,474 Cox@Home high-speed-data customers, out of
3.463 million data-ready homes passed.

The MSO's residential phone customers numbered 80,952 at
the end of September, out of 1.027 million telephone-ready homes. Cox saw growth in
telephone revenue on both the residential and commercial sides of the business, the
company said.

"We have been successful in the initial deployment of
our digital-video, high-speed Internet and digital-telephone services in our major
markets," Cox president Jim Robbins said in a press release, "and we have now
begun expanding them into our midsized markets. In all of these Cox markets, we are
experiencing exciting customer acceptance of our full-service slate of broadband services.
Currently, Cox customers have purchased more than 423,000 new-service revenue-generating
units, putting us on track to exceed our expectations for 1999."

Programming costs rose 12 percent for the quarter, and
plant-operations expenses increased 10 percent. Marketing costs were up 24 percent due to
the effort to roll out the new services.

The MSO reported a 22 percent rise in pay-per-view revenue
over the year-earlier quarter, due to an increase in digital PPV revenues and the Oscar De
La Hoya-Felix Trinidad boxing match.

Cox's stock price ticked up about 5 percent to $44.38 at
midday last Thursday.

September