RCN Posts Solid 2Q - Multichannel

RCN Posts Solid 2Q

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RCN posted across-the-board gains in its second-quarter-2006 financial results, announced Wednesday.

Total revenue of $157 million was up 11% from $141 million in the year-earlier period and 10% from $144 million in the first quarter of 2006.

Earnings before interest, taxes, debt and amortization of $36 million jumped 84% from $20 million in the prior-year quarter and 34% from $27 million in the first quarter of 2006.

The company said the current-quarter results included a $5 million settlement regarding disputed network charges, and second-quarter EBITDA would have been $31 million without that settlement, representing a 20% EBITDA margin.

Capital expenditures at RCN were $19 million versus $12 million in the second quarter of 2005 and $15 million in the first quarter of 2006.

RCN had approximately 418,000 customers as of June 30, versus 416,000 March 31.

“The innovative product, sales and marketing initiatives we have put in place paid off this quarter, driving customer growth in all markets,” RCN CEO Peter D. Aquino said in a prepared statement.

“Our legislative and regulatory efforts resulted in some key victories for fair competition and pricing, establishing RCN's presence in these arenas, and winning two additional Lehigh Valley [Pa.] franchises,” he added.

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