RCN Posts Quarterly Loss
Cable and Internet provider
RCN
(RCNC)
posted a third-quarter loss, despite a rise in revenue.
Excluding a $75.5 million gain from the early retirement of debt, the company had a loss of $128.3 million, or $1.54 a share, compared with a loss of $73.4 million, or $1.15 a share, in the third quarter of 2001.
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Total revenue was $114.5 million, up from $103.7 million a year ago.
The company's pro forma loss before taxes was $15.1 million, compared with $44.2 million a year ago. Pro forma revenue was $148.9 million, compared with $136.7 million in the year-ago period. RCN said pro forma results reflect the consolidation of the Starpower joint venture in Washington D.C., owned 50% by RCN.
"We added customers onto our network, took costs out of the business, reduced our cash burn and improved our margins as we head toward EBITDA positive as a company," said David C. McCourt, chief executive of Princeton, N.J.-based RCN.
Shares of the company closed at 81 cents Monday on the
Nasdaq
.
