Mediacom Communications Corp. became the third MSO in four days to release a
statement outlining its accounting practices in greater detail in an effort to
distance itself from the scandal surrounding Adelphia Communications Corp.
Mediacom is the third MSO to do so this week -- Cablevision Systems Corp.
issued its statement Monday and Insight Communications Co. Inc. held a
conference call with analysts Wednesday.
In its statement, Mediacom said that unlike Adelphia, it does not capitalize
costs associated with reconnecting subscribers, it does not receive
marketing-support payments from equipment vendors, it has appropriately written
down any decline in value of its equity investments, it has no off-balance-sheet
debt and it has no special relationships with insiders.
The operator also said its total subscriber count is lower than its actual
number of customers because it counts bulk subscribers by taking the total
amount of revenue from bulk accounts and dividing it by the average price of
limited and expanded-basic service in those systems.
Moreover, Mediacom said it does not count customers who take data service
only as video customers and it counts as one customer subscribers who have
multiple set-top boxes in their homes.
Mediacom said all of its subsidiaries are wholly owned except for one in
which chairman Rocco Commisso has a 1 percent interest. The MSO added that
Commisso's interest translates into an attributed equity interest in fewer than
The additional information had little effect on Mediacom's stock, which has
declined about 34 percent since the Adelphia scandal broke March 27. The stock
closed at $8.71 per share Thursday, down 27 cents.