Despite increasing pressure from overbuilders in two key markets, Insight
Communications Co. Inc. is holding its own, reporting fourth-quarter revenue and
cash-flow growth and moving ahead in the rollout of new services.
On a pro forma basis, Insight reported revenue growth for the year of 6.4
percent to $660 million and cash-flow growth of 7.3 percent to $301.6 million.
Chief financial officer Kim Kelly said 2001 guidance is for cash flow to rise to
$328 million, a 9 percent increase.
Insight ended the year with 1.4 million subscribers, an increase of about 0.5
percent. The company also finished the year with 152,000 digital-cable customers
and 52,000 high-speed-data customers.
Insight focused heavily on rebuilding its systems in 2000, spending about $80
million on upgrades. At year-end, about 95 percent of Insight's systems were
Those upgrades have helped Insight in its fight against overbuilders in
Evansville, Ind., and Columbus, Ohio, where it competes against Sigecom LLC and
Ameritech New Media, respectively.
In the nine months ended Sept. 30, Insight lost about 6,300 subscribers in
Evansville to Sigecom, which was offering a bundled package of voice, video and
data services to customers. But in the fourth quarter -- after Insight offered
an interactive digital-video service coupled with high-speed data -- the company
lost only 400 subscribers.
While Kelly told analysts in a conference call that losing those subscribers
hurt, Insight is regaining lost ground in Evansville, with 20 percent
penetration for digital-interactive services and plans to launch AT&T
Corp.-branded telephony service there later this year.