WOW Added 3,900 HSI Customers in Q2 Despite Rate Increases - Multichannel

WOW Added 3,900 HSI Customers in Q2 Despite Rate Increases

Operator said customer service investments buffered blowback
Author:
Publish date:
WOW logo 2 16x9

WideOpenWest saw its stock spike over 8% in morning trading Friday, with the Englewood, Colo.-based cable operator reporting its best residential broadband subscriber growth in four second quarters, despite an April rate increase.

WOW added 3,900 high-speed internet users in the second quarter, an improvement of 6,800 customers compared to the second quarter of 2017.

The operator also reported losses of 9,100 video users during the period ending June 30—its best Q2 video performance in three years.

Related: WOW Stocks Soar on Lighter Than Expected Video Losses

Residential subscription revenue increased by 2.5% to $231.1 million in the second quarter. Business services revenue increased by 15.6% to $237.2 million.

Total revenue came in at $291.3 million, down 2.1% year over year.

WOW CEO Theresa Elder noted the operator’s ongoing $20 million - $25 million investment in customer service personnel and online customer tools, noting that it helped mitigate the potentially erosive blowback of the rate increases.

“We are able to serve a modern and mobile customer base that increasingly wants options,” Elder told investors during Thursday evening’s call.

She described the investments as falling into three buckets: customer care, sales and marketing and online tools.

Related: WOW! Broadens 1-Gig Rollout

In addition to rate increases, Elder said, “We are definitely moving people up to higher speed tiers.” WOW didn’t break out residential broadband ARPU, but she said improvements in that area are coming from a “mix of higher speed as well as the rate increases.”

Meanwhile, asked if WOW is interested in entering the wireless business, Elder responded, “Right now, we look at wireless opportunities from a wholesale perspective and the ability to provide backhaul there.”

Related