Mediacom Communications reported that revenue was up more than 10 percent, to $339.7 million, in its first quarter of 2008.
CEO Rocco Commisso said that Q1 2008 performance benefited from comparisons to an unusually weak Q1 2007, but even so, the company “significantly surpassed expectations and produced record results, giving us a great deal of momentum for the balance of 2008.”
For the first time since early 2005, the company grew basic video subscribers sequentially – the net add in the recently completed Q1 was 2,000 new subscribers. Digital customers grew by 27,000, compared with an increase of 2,000 in the prior year period, ending the quarter with 584,000 customers. As of March 31, 31 percent of digital customers received digital video recorder (DVR) and/or high-definition television (HDTV) services, up from 22.6 percent at the end of the prior-year period.
High-speed data customers grew by 30,000, compared with a gain of 22,000 in the prior-year period, ending the quarter with 688,000 customers.
Phone customers grew by 19,000, compared with a gain of 18,000 in the prior-year period, ending the quarter with 204,000 customers.
Encouraged by Q1 results, Mediacom raised its full-year 2008 financial guidance. It now expects revenue growth between 6.5 percent and 7.5 percent; previously, the company had projected growth between 6 percent and 7 percent. The company plans to take advantage by increasing capital expenditures a bit to about $275 million, when previously it had planned to spend between $255 million and $265 million.
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