Insight Communications Co. Inc. posted double-digit increases in revenue and
operating cash flow in the first quarter of 2003, paced by solid
revenue-generating-unit gains in the cable-modem, digital-cable and telephony
The company posted operating cash flow of $90.1 million in the quarter, a 16
percent jump over the $77.6 million reported in the year-earlier period. Revenue
jumped 12 percent over the year-earlier period to $215 million.
Insight was particularly pleased with its basic growth of 8,300 subscribers,
twice what direct-broadcast satellite gained in its territory during the
quarter, according to president Kim Kelly, who added, "We had very good customer
Insight posted 20,000 net additions in digital subscribers, 23,500 new
cable-modem subscribers and 7,100 new telephony subscribers, despite rough
winter weather in many of its markets, Kelly said, which curtailed signup
Still, she added, RGUs were up 18 percent over the first quarter of 2002 and
20 percent over fourth-quarter 2002.
Kelly said Insight has seen no ill effect from lower regional Bell operating
company digital-subscriber-line pricing. "I'm not seeing any pricing pressure on
that product," she added. "Modems are a real bright spot."
Kelly also said digital set-top penetration could continue to increase due to
high-definition TV. "We had really strong HD numbers," she said, adding that
Insight has signed HD deals with 25 of the 28 broadcast affiliates in its
That gave Insight subscribers the chance to watch the Super Bowl, the Final
Four, the Kentucky Derby and The Masters in HD, which DBS could not do, she
Insight executives said the MSO planned to launch a $9.95-per-month "basic"
HDTV tier later this year.
On video-on-demand, Kelly said 80 percent of Insight subscribers are
VOD-enabled. Usage rates range from 28 percent to 50 percent among Insight's
355,000 digital subscribers who can receive VOD. Insight is averaging $3 per
month, per digital subscriber in VOD revenue, she added.
Insight said average revenue per subscriber jumped 12 percent year over year
to $55.34 per month, driven by high-speed gains and basic-rate