Mediacom Communications reported stronger-than-expected second quarter results, prompting the secondary-market cable operator to increase its guidance for the full year.
Revenue was up 9% to $302 million and adjusted operating income before depreciation and amortization (AOIBDA, a measure of cash flow) rose 8.5% to $114.9 million in the period, outpacing most analysts’ projections.
While basic-subscriber losses continued during the period -- the operator lost 22,000 -- high-speed-data subscribers rose by 12,000 and voice-over-Internet-protocol telephony customers increased by 20,000 in what is typically a seasonally weak quarter. Mediacom also said it lost about 1,000 digital-cable customers.
In a prepared statement, Mediacom chairman and CEO Rocco Commisso said that despite the basic-subscriber losses, the MSO experienced its greatest revenue and AOIBDA growth since the second quarter of 2003.
Based on the strength of the second-quarter results, Mediacom increased its financial guidance for the year. Revenue is now expected to rise 9%-10% in 2006 (versus previous estimates of 8%-9% growth) and AOIBDA should rise 9%-10% (compared with past predictions of 7%-8% growth).
Investors were apparently pleased, driving Mediacom stock up 27 cents each (4.5%) to $6.45 per share in afternoon trading Wednesday.
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