The U.S. cable industry added about 2 million RGUs during Q2, a 33 percent increase over Q2 2005, according to Fitch Ratings.
The gain was driven largely by video subscribers adding telephony. In Q2, MSOs added approximately 676,000 cable telephony subscribers, accounting for approximately 60 percent of the year-over-year growth.
Fitch noted that all operators are accelerating their penetration of homes passed with telephony service. The success of telephony is countering the slowness traditionally experienced during the second quarter of each year.
Operators collectively generated approximately $4.6 billion of revenue (Fitch tallied earnings before interest, taxes, depreciation and amortization, or EBITDA) during the second quarter, an increase of 10.2 percent compared to Q2 2005. Fitch said it believes EBITDA margins are being pressured by higher costs related to customer acquisition activity.