Mediacom Revenue Up 7.4% in Third Quarter
Cable operator Mediacom reporters Q3 revenues of $352.6 million, up on 28.4% boost in operating income
By John Eggerton -- Broadcasting & Cable, 11/6/2008 6:56:00 AM
Cable operator Mediacom says its third-quarter revenues were up 7.4% to $352.6 million on a 28.4% boost in operating income to $71.2 million.
Average revenue per sub was up 8.6% to $88.86 per month.
Mediacom attributed the rise to the fundamental strength of the cable business in general and its operating strategy in particular.
With $800 million in available credit, Mediacom says it has had enough to boost capital expenditures in the transition to digital cable without having to go back to the credit markets until mid-2011, a good position to be in given the tightness of those markets in the current economic crunch.
With those capital expenditures out of the way, and interest rates declining, the company sees free cash growth in 2009 and beyond.
Mediacom said that it was revising its full-year capital expenditure estimate upwards by $10 million to $285 million and its full-year projected earnings to 7.5%-8% from 7%-8%
Ad revenues were down 3% thanks in part to the tanking automotive category. But phone revenues were up a whopping 64.1%.
Video revenues were up 1.6% in the third quarter on an increase in basic rates and more advanced video customers. Mediacom added 25,000 digital subs vs. a pickup of 9,000 in the third quarter of 2007, bringing its digital subs to 47.1% of basic subs.
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