Mediacom Communications Corp. reported revenue growth of 10.8 percent and
cash-flow gains of 17.2 percent in the third quarter, largely fueled by growth
in its high-speed-data and digital-cable businesses.
Mediacom said revenue for the period was $233.7 million in the period.
Operating cash flow was $97.5 million.
Digital subscribers were up 19,000 in the period to 348,000. High-speed-data
customers rose by 22,000 in the third quarter to 167,000.
In a conference call with analysts, Mediacom chairman and CEO Rocco Commisso
said the MSO completed a total repricing and repackaging of its digital offering
in its former AT&T Broadband systems, which helped to fuel growth.
'We have corrected a flawed structure,' Commisso said on the call.
That was apparent in the third-quarter results. Revenue growth at the former
AT&T Broadband systems was 10.4 percent in the quarter, with system cash
flow rising 18.6 percent and operating cash flow up 26.6 percent.
In its Mediacom LLC systems, revenue rose 11.2 percent, with system cash flow
up 9 percent and operating cash flow up 8.6 percent.
Commisso said the dramatic rise in the former AT&T Broadband systems was
due to Mediacom's ability to drastically reduce overhead in those
In the fourth quarter, Mediacom expects revenue to rise between 11.6 percent
and 13 percent, to $237 million to $240 million. Operating cash flow growth in
the fourth quarter is expected to be between 10 percent and 12.2 percent, to
between $99 million and $101 million.
The company expects to show free cash flow -- operating cash flow after
capital expenditures and interest payments are made -- in the second half of
Basic-subscriber growth was essentially flat for the period, adjusting for
the acquisition of 3,000 subscribers in the first quarter. Mediacom lowered its
basic-subscriber guidance for the full year to between 1.591 million and 1.597
million, compared with previous estimates of 1.6 million.
Mediacom stock rose 50 cents each to $6.08 per share Monday, a gain of nearly 9 percent.