Despite the ongoing pressures of the pandemic and the impact of two hurricanes and a massive wind storm on its service territory, Mediacom Communications reported the strongest cash flow growth in its 25-year history (15.4%), as broadband growth continued to drive Q3 results.
Revenue rose 5.5% to $538.6 million in the quarter, and adjusted OIBDA, a measure of cash flow, was $228.9 million, a 15.4% increase. That 15.4% increase also was tops among all publicly traded cable operators in the period.
Helping to drive the results were record broadband subscriber gains -- Mediacom added 29,000 high-speed internet customers in the period, more than double the 13,000 it added in the previous year. Video subscriber losses at 13,000 in the period were lower than the 18,000 it lost in the same period in 2019.
During the period Mediacom markets in several Gulf states successfully weathered Hurricane Zeta and Hurricane Sally, in addition to high winds caused by a derecho that rocked several communities in Iowa and Illinois.
“Despite challenges posed by the coronavirus pandemic and the devastating windstorms and hurricanes impacting certain markets we serve, our dedicated and hard-working frontline employees rose to the task of helping Mediacom deliver outstanding results this quarter, both operationally and financially,” chairman and CEO Rocco Commisso said in a press release, adding that the OIBDA growth was the highest in Mediacom’s 25-year history. “...Looking longer term, with CBRS spectrum rights acquired in the recent FCC auction, we are excited about the opportunity to provide fixed wireless broadband to hundreds of thousands of unserved or underserved households in close proximity to our existing footprint beginning in the second half of 2021, furthering our deliberate transition to a data-centric business model.”
Mediacom also managed to reduce its leverage in the period, lowering its net debt by $427 million to $1.857 billion in the period. Mediacom’s net leverage ratio fell to 2.03 times estimated cash flow from 2.88 times in the prior year.
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.
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