RCN Posts Quarterly Loss

But the cable and Internet provider reports a rise in revenue.

Author:: Meredith Derby
Publish date:: Nov 5, 2002 9:12 AM EST

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.

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