swung to a second-quarter profit and blew away analysts' projections as customers continued purchasing more than one cable-related service during the quarter.
In the three months ended June 30, the company earned $117.7 million, or 19 cents a share, reversing last year's loss of $516.2 million, or 86 cents a share. Analysts were expecting the company to break even. Operating income increased 68% to $168.3 million.
Revenue rose 14% to $1.4 billion. Cox attributed the improvement to additional customers for advanced services, a higher basic cable rate, an increase in monthly high-speed Internet access rates, and more commercial broadband customers. Operating cash flow was up 20%.
"A driving factor in our success continues to be our bundling strategy. Today nearly one-third of our customers buy multiple services from Cox," said President and Chief Executive Jim Robbins in a written statement.
The company said it had $463 million in cash flow from operating activities and $125.8 million in free cash flow. Additionally, the company said it now expects operating cash flow growth of 17% to 18%, including a one-time item, for the full year.
Also in 2003, Cox sees revenue growth of 14% to 15%. Analysts are calling for $5.78 billion. In 2002, the company had sales of $5.04 billion.