A combination of video price increases, high-speed-data unit growth and
cost-cutting helped Mediacom Communications Corp. to post pro-forma cash-flow
growth of 18.2 percent in the first quarter.
Mediacom's results, announced Monday, also included 8.8 percent revenue
growth, to $219.5 million from $201.8 million in the first three months of
Top-line highlights included the net addition of 12,000 subscribers to the
Mediacom Online high-speed-data service, even though Mediacom did not launch in
new markets in January or February and made 'limited marketing efforts' as it
completed a transition away from bankrupt vendor Excite@Home Corp.
Data revenue ($13.9 million) was 86 percent ahead of results in the same
period a year ago, accounting for 36 percent of Mediacom's overall revenue rise,
chief financial officer Mark Stephan said during a conference call with
In the quarter, Mediacom also pushed through basic-cable rate increases and
retooled some digital packages in systems it bought from AT&T Broadband last
On the downside, the 1.6 million-subscriber MSO added a net of only 5,000
basic customers, including 3,000 it bought from other cable operators.
In fact, the older Mediacom systems lost 10,000 subscribers in the quarter.
All internal growth came in the systems (with about 800,000 subscribers)
Mediacom bought from AT&T Broadband.
Mediacom expects to have more subscriber losses in the second quarter -- a
seasonally weak period -- but officials were sticking to forecasts of adding
about 1 percent to the basic base overall in 2002.
Mediacom's pro forma cash flow -- $88.1 million -- excludes $4.3 million in
expenses related to the transition away from Excite@Home. Pro forma comparisons
to the first quarter of 2001 assume that the AT&T Broadband acquisitions,
which closed last June and July, were completed Jan. 1, 2001.
Mediacom's stock price rose 59 cents (5.5 percent) to
$11.29 per share in NASDAQ trading Monday.