Flat 4Q for RCN

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RCN Corp. announced its results for the fourth quarter and full-year 2005.

The MSO said it ended 2005 with approximately 409,000 subscribers, versus some 425,000 at the end of 2004 and about 411,000 at the end of the third quarter of 2005.

The operator said average revenue per customer for the year was $102, up 6% from $96 in 2004. Fourth-quarter-2005 ARPC was $103, up from $97 in the year-ago period and $102 in the third quarter of 2005.

Fourth-quarter-2005 total revenue of $140 million was flat compared with the year-ago quarter and up slightly from $139 million in the third quarter of 2005.

Earnings before interest, taxes, debt and amortization also showed little movement, totaling $22 million in the fourth quarter versus $22 million in the previous-year quarter and $23 million in the third quarter of 2005.

For the full year, RCN reported revenue of $561 million compared with $562 million in 2004 and EBITDA of $91 million, up nearly 18% from $77 million in 2004.

“RCN's 2006 outlook for at least 25%-30% EBITDA growth combines our expectations for continued cost reductions and increasing revenue growth in our core residential and commercial businesses,” chief financial officer Mike Sicoli said in a prepared statement.

“When combined with significant decreases in interest expense due to debt reductions resulting from the pending sale of our Mexican investments, and a moderate increase in capital spending due to the acquisition of [Consolidated Edison Communications Holding Co. Inc.], we expect to achieve positive free cash flow in the second half of 2006,” he added.

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