MEDIACOM COMMUNICATIONS CORPORATION (Nasdaq: MCCC) today reported financial results for the three and nine months ended September 30, 2010. Mediacom Communications will hold a teleconference today at 10:30 a.m. Eastern Time to discuss its financial results. A live broadcast of the teleconference can be accessed through our web site at www.mediacomcc.com.
Third Quarter 2010 Financial Highlights *
- Revenues were $374.4 million, a 3.0% increase from the prior year period
- Adjusted operating income before depreciation and amortization (“Adjusted OIBDA”)was $132.2 million, a 0.7% increase from the prior year period 1
- Operating income was $70.3 million, a 0.9% decline from the prior year period
- Revenue generating units (“RGUs”) grew 19,000 for the quarter and 104,000 year-over-year, representing a 3.5% annual gain
- Free Cash Flow was $21.5 million, or $0.32 per basic share, compared to $20.4 million, or $0.30 per basic share, for the prior year period 1
Third Quarter 2010 Financial Results
Revenues rose 3.0% from the prior year period, largely due to continued growth in high-speed data and, to a lesser extent, advertising and phone revenues, offset in part by lower video revenues. Average total monthly revenue per basic subscriber rose 8.4% to $103.17.
- Video revenues declined 1.1%, primarily due to a lower number of basic subscribers, mostly offset by video rate increases and higher revenues from our digital video, digital video recorder and high-definition television services. We lost 13,000 basic subscribers, compared to a loss of 19,000 in the prior year period.We added 12,000 digital customers to end the quarter with 717,000, a 59.6% penetration of basic subscribers. Year-over-year, we gained 52,000 digital customers, a 7.8% growth rate.
- High-speed data revenues rose 9.7%, mainly due to a year-over-year gain of 62,000 high-speed data customers, or 8.1%. We gained 13,000 high-speed data customers to end the quarter with 827,000, a 29.4% penetration of estimated homes passed.
- Phone revenues grew 7.5%, largely due to a year-over-year increase of 50,000 phone customers, or 18.2%, offset in part by higher levels of discounted pricing. We gained 7,000 phone customers to end the quarter with 324,000, a 12.2% penetration of estimated marketable phone homes.
- Advertising revenues rose 18.8%, primarily due to increased national and local sales, with significant contributions from the political and automotive categories.