Cox reports low quarterly growth
Cox Communications' road to its promise of double-digit growth in cash flow is going to be slow, with the MSO posting an increase of just 8% for the first quarter. Cox said that, after adjustment for acquisitions, its cash flow totaled $325.5 million, vs. $302.3 million last year.
The company has said it expects to exceed 11% growth for the full year. Cable revenue increased 8%, in part because pay-per-view boxing events were lackluster this year.
But overhead costs jumped 17% because of the high cost of rolling out high-speed data, telephone and digital cable services, plus digesting last year's takeover of TCA Cable. Both cable and data revenues more than doubled, but each was less than 5% of the company's $779.9 million in sales.