Mediacom Results Join Cable Earnings Parade

Mediacom Communications continues cable operators’ upward trend with strong Q2 results.
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Mediacom Communications issued improved second-quarter earnings Thursday in a fresh indication that cable TV is winning the multichannel-TV war with satellite and telco video.

Net income reached $20.9 million, or 22 cents per share, in the quarter ended June 30, a turnaround from a loss of $6.4 million (6 cents) a year ago.

Mediacom, the nation’s eight-largest MSO, reported that operating income grew 13.7% to $69.3 million. Revenue jumped 7.6% to $349.5 million. All of those metrics generally exceeded analyst expectations.

Mediacom lost 5,000 basic subscribers to finish the quarter with 1.321 million, narrowed from an 18,000 decline a year ago, but revenue rose 2.3% from higher spending per customer.

The Middletown, N.Y.-based cable operator simultaneously raised its guidance for the full year that adjusted operating income will rise 8.5%-9.5% from 7%-8% previously and revenue 7%-8% from 6.5% previously.

“We delivered another quarter of solid results despite a flat advertising-sales market,” Mediacom chairman and CEO Rocco Commisso said in a statement. “Our RGU [revenue-generating-unit] growth was a record for any second quarter in the company’s history, due in part to the lowest basic-subscriber loss for any comparable period since 2001. Given our performance thus far, together with our outlook for the balance of 2008, we feel comfortable raising external guidance for the second time this year.”

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