Excite@Home nearly doubled its revenue and grew itssubscriber base to 840,000 in the third quarter, putting the data-over-cable company wellon track to reaching 1.1 million subscribers by the end of the year.
The company reported revenue of $113 million in the thirdquarter, up from $58 million the year before. Net losses were about $4 million, or 1 centper share for the period, compared to a loss of $8 million, or 2 cents per share, in thesame period last year.
But the big story was Excite@Home's subscribergrowth, up by more than 35 percent over the previous quarter and more than four times thecustomers in the third quarter of 1998.
The @Home service was launched in 11 new markets duringthe quarter, bringing the total availability to 105 markets worldwide. Four new cablecompanies joined the @Home Solutions partnership for smaller operators, bringing thetotal number of partners to six, covering more than one million homes. A total of 23 cablecompanies now offer or are preparing to offer the @Home service to a total footprint of72 million homes worldwide; 15 million homes were added during 1999.
"I am extremely proud of our accomplishments in thisfirst full quarter operating as a combined company," CEO Thomas Jermoluk said in aprepared statement. "Our teams are executing on our strategy as a seamlessorganization, as evidenced by the strong results delivered in all key business segments.
"We have terrific momentum going into the finalquarter of the year, and fully expect to hit the key milestones we've targeted sincethe beginning of the year, such as our one millionth broadband subscriber and our firstquarter of operating profitability," he added.
Excite@Home also laid out other fourth quarter goals --including an 11 percent increase in revenue to $125 million and a year-end total of 1.1million subscribers.
In a report issued shortly after Excite@Home'snumbers were released, Janco Partners analyst Ted Henderson said subscriber growth in thethird quarter was mainly due to the company's move to the retail-modem sector throughCompUSA and other retailers, which resulted in 15,000 new subscribers in the period.
Although the third quarter results were in line withHenderson's expectations, he cautioned about the company's ability to executeits strategy, in light of regulatory concerns.
"We restate our concerns on the execution, deploymentand regulatory front that will continue to cause volatility in Excite@Home,"Henderson wrote.