Excite@Home nearly doubled its revenue and grew its
subscriber base to 840,000 in the third quarter, putting the data-over-cable company well
on track to reaching 1.1 million subscribers by the end of the year.
The company reported revenue of $113 million in the third
quarter, up from $58 million the year before. Net losses were about $4 million, or 1 cent
per share for the period, compared to a loss of $8 million, or 2 cents per share, in the
same period last year.
But the big story was Excite@Home's subscriber
growth, up by more than 35 percent over the previous quarter and more than four times the
customers in the third quarter of 1998.
The @Home service was launched in 11 new markets during
the quarter, bringing the total availability to 105 markets worldwide. Four new cable
companies joined the @Home Solutions partnership for smaller operators, bringing the
total number of partners to six, covering more than one million homes. A total of 23 cable
companies now offer or are preparing to offer the @Home service to a total footprint of
72 million homes worldwide; 15 million homes were added during 1999.
"I am extremely proud of our accomplishments in this
first full quarter operating as a combined company," CEO Thomas Jermoluk said in a
prepared statement. "Our teams are executing on our strategy as a seamless
organization, as evidenced by the strong results delivered in all key business segments.
"We have terrific momentum going into the final
quarter of the year, and fully expect to hit the key milestones we've targeted since
the beginning of the year, such as our one millionth broadband subscriber and our first
quarter 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 1.1
In a report issued shortly after Excite@Home's
numbers were released, Janco Partners analyst Ted Henderson said subscriber growth in the
third quarter was mainly due to the company's move to the retail-modem sector through
CompUSA and other retailers, which resulted in 15,000 new subscribers in the period.
Although the third quarter results were in line with
Henderson's expectations, he cautioned about the company's ability to execute
its strategy, in light of regulatory concerns.
"We restate our concerns on the execution, deployment
and regulatory front that will continue to cause volatility in Excite@Home,"