RCN Boosts Estimates for Full-Year 2007
Q2 Net Income Falls Due to Debt-Related Charge
By Jon Hemingway -- Broadcasting & Cable, 8/9/2007 6:31:00 AM
Cable operator RCN’s net dropped on a debt-related charge in the quarter, but revenues were up and the company raised its expectations for the full year.
Revenues for the second quarter grew 6.5% to $159 million, including a $4.4 million one-time benefit, from $149 million in the same quarter a year ago. Revenue from the video segment increased 6.6% to $66.4 million, the data segment increased 8.7% to $32.6 million and the telephone segment decreased 8.1% to $27.96 million.
EBITDA (earnings before interest, tax, depreciation and amortization) increased 20% to $42.5 million from $34.5 million in Q2 2006.
The company narrowed its operating loss to $10.2 million in the quarter compared to $19 million in Q2 2006 on the back of the increase in revenue.
The net loss for the quarter was $79.8 million versus $25.3 million a year ago. The company took a $63.9 million charge in the quarter for early extinguishment of debt tied to its recapitalization.
Operating cash flow in the quarter was $53.4 million versus $13.9 million in Q2 2006.
The company’s customer relationships increased by 2,000 from the first quarter of the year to 409,000. Total revenue-generating units increased 6,000 to 873,000, led by data RGUs which increased by 5,000. The average revenue per unit increased to $109 from $108 in Q1.
The company increased its expected results for full-year 2007. Revenue expectations increased $5 million to a range of $625 million-$635 million. EBITDA increased $5 million to a range of $145 million-$155 million. And capital expenditures of $105 million-$110 million are at the upper end of the previous outlook.
-
i cant see how this company makes money. i got a postcard in the mail for $75 triple play.
sharon pitt - 8/10/2007 8:02:00 AM EDT
No related content found.
-
No Top Articles
Featured Company
-
Digital Rapids
Digital Rapids is the leading provider of professional hardware and software tools, technology and expertise for bringing video to wider audiences and new viewing platforms. Continuing to set new standards in quality, productivity and versatility, our solutions span the critical ..more
VIEW ALL GALLERIES
