A weak economy and tougher competition drove sluggish third quarter
results for Mediacom Communications, with revenue and cash flow growth
below analysts' expectations.
Revenue at the small market MSO was up
just 3% to $374.4 million, below consensus estimates of $376 million for
the quarter. Adjusted operating income before depreciation and
amortization rose just 0.7% to $132.2 million.
On a conference call
with analysts Monday, Mediacom chairman and CEO Rocco Commisso blamed
the sluggish showing on the ongoing recession and competition from
satellite TV and telco video.
Mediacom lost about 13,000 basic video
customers in the period, an improvement from the 19,000 basic customers
it lost in the third quarter last year. Digital cable subscribers rose
by 12,000 in the period, improving penetration of that service to about
60%. High-speed Internet customers rose by 62,000 in the period and
telephony subscribers increased by 50,000.