Adelphia Communications Corp. reported record revenue and
operating cash flow for the second quarter ended June 30, fueled by gains in overall
subscribers and in its digital-television segment.
Pro forma revenue for the quarter was $289.9 million, up
19.7 percent, and operating cash flow was $126.7 million, an increase of 9.1 percent.
At its cable operations -- which include high-speed data
and digital television -- pro forma revenue was $255.7 million, up 9 percent. Analysts
said the results were in line with expectations.
At its telephony subsidiary, Hyperion Telecommunications
Inc., pro forma revenue was $34.2 million, up from $7.6 million a year earlier.
Telephone-access lines at the unit rose 306.3 percent to 191,285 lines. However, the
unit's operating-cash-flow deficit increased by 74.4 percent in the second quarter,
to $10.1 million, compared with the same period last year.
Pro forma sales of digital equipment were $2.4 million in
the quarter, up from just $262,000 in the year-ago period.
The company also pared down its net losses in the period to
$47.3 million, or 82 cents per share, compared with $48.3 million ($1.56) in the same
period last year.
Adelphia boosted its homes passed by 2 percent pro forma to
3.2 million, and its basic subscribers were up by 37,000, or 1.7 percent, to 2.3 million.
Digital subscribers increased more than fivefold from 13,666 in June 1998 to 72,032 in the
most recent period.
Subscribers to the MSO's "Power Link"
high-speed Internet service more than doubled from 9,248 to 22,180 in the most recent
During the quarter, Adelphia began integrating three new
acquisitions that are scheduled to close later this year: Century Communications Corp.,
FrontierVision Partners L.P. and Harron Communications Corp. According to a prepared
statement from Adelphia chairman John Rigas, the transition is moving ahead smoothly.
"We are very pleased that the management teams of
Adelphia and the companies to be acquired were able to advance this process without any
disruptions to current operating results," Rigas said.
"The combined entities added 37,000 basic subscribers,
which was ahead of our expectations, and they also reported revenue and [cash-flow] growth
rates of 9 percent, which were in line with our expectations," he added.
The company said capital expenditures increased 30 percent
compared with the first quarter of this year, primarily for new product rollouts.