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.