Fitch Sees MSO Momentum

Author:
Updated:
Original:

The U.S. cable industry added 2 million revenue-generating units during the second quarter, up 33% versus the same period last year, according to Fitch Ratings.

The second quarter has traditionally been the weakest in terms of subscriber-performance metrics, Fitch said.

Cable-telephony services were a big driver, as MSOs added some 676,000 telephony subscribers during the period, representing about 60% of the year-over-year growth, according to Fitch.

The company added that it believes the introduction of triple-play service will positively affect MSOs' basic-subscriber metrics.

Fitch also reported that industry revenues were approximately 11% higher than the second quarter of 2005, and MSOs collectively generated approximately $4.6 billion of earnings before interest, debt, taxes and amortization during the second quarter, up 10.2% from the prior-year period.

Related