The first quarter was a busy one for Insight Communications Co. Inc., as
it transitioned its cable-modem customers to its own network, while posting
revenue in excess of the Street's expectations.
The company reported revenue of $192.2 million, which beat analysts'
consensus estimate of $186.4 million, according to Thomson Financial/First
Insight ended the quarter with 1.7 million revenue-generating units, up from
1.5 million in the first quarter of 2001. The RGUs include Insight's basic,
digital-video, high-speed-data and telephone customers.
The addition of new services drove up per-customer revenue in several
categories. The average monthly modem revenue per customer increased $1.31
compared with the same quarter last year, and monthly digital revenue per
customer was up $1.49.
During the quarter, Insight completed the transition of its cable-modem
customers from Excite@Home Corp.'s network to Insightbb.com. As a result, the
company added 6,400 modem customers, double the increase posted in the previous
Excite@Home filed for bankruptcy in September and, in order to avoid the
immediate shutdown of the network, Insight forked over $10 million to the
bankrupt company. The agreement kept the network lit until Feb. 28.
Capital expenditures totaled $50.3 million.
Looking ahead to full-year 2002, Insight expects to spend
$300 million. The company will fund these expenditures through existing sources
and borrowings under its credit facility.