Broadband Additions Drive Big Cash Flow Gains at Mediacom
Cable operator reports 15.2% increase in Adjusted OIBDA; revenue rises 5.8%
Broadband customers rose by about 16,000 in the first quarter at Mediacom Communications, slightly behind last year’s torrid pace, but enough to drive double-digit cash flow growth at the mid-sized cable operator in the period.
Those broadband additions led to a 15.8% increase in overall high-speed data revenue to $258.7 million, which drove adjusted OIBDA (Operating Income Before Depreciation and Amortization, a measure of cash flow) up 15.2% for the company. Overall revenue was $547.5 million, up 5.8% from the prior year.
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Video subscribers declined by 17,000 in the period, the same number the company lost in the prior year. Phone subscribers fell by 12,000 in Q1, compared to a loss of about 5,000 in the same period in 2020.
“The first quarter of 2021 marked another exceptional operating period for Mediacom, as we registered our third straight quarter of industry-leading Adjusted OIBDA growth with a 15.2% increase from the prior year period and extended our streak of year-over-year revenue growth to 97 consecutive quarters,” chairman and CEO Rocco Commisso said in a press release. “Notably, despite Mediacom becoming a meaningful taxpayer in 2021, we generated $129.5 million of after-tax free cash flow, and our net debt leverage declined to an all-time low of 1.67x.”
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Mike Farrell is senior content producer, finance for Multichannel News/B+C, covering finance, operations and M&A at cable operators and networks across the industry. He joined Multichannel News in September 1998 and has written about major deals and top players in the business ever since. He also writes the On The Money blog, offering deeper dives into a wide variety of topics including, retransmission consent, regional sports networks,and streaming video. In 2015 he won the Jesse H. Neal Award for Best Profile, an in-depth look at the Syfy Network’s Sharknado franchise and its impact on the industry.