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Mediacom Sees Slower Growth

Despite a small gain in revenues in the second quarter, Mediacom Communications Corp. posted a loss of $6.6 million (6 cents per share), versus a profit of $5.7 million (5 cents per share) in the year-ago period. (See Mediacom Posts Q2.)

Mediacom said revenues rose 7.4 percent to $324.7 million, thanks in part to subscriber growth at its high-speed Internet and phone businesses. The MSO also ended the second quarter with $3.1 billion in outstanding debt, up $4 million since the previous period.

The MSO ended the quarter with 2.63 million revenue generating units, up 6.3 percent, but that was not enough to avoid a loss of 18,000 basic subs. Mediacom, which lost 22,000 basics a year earlier in the traditionally seasonally weak quarter, had 1.34 million basic subs as of June 30, 2007.

The story was better on the digital end. The company added 2,000 digital subs in the quarter, versus a year-ago loss of 1,000, ending the quarter with a total of 532,000.

Also on the new services front, Mediacom signed up 21,000 new phone customers, giving it a total of 144,000. By quarter's end, the MSO marketed its phone product to 2.45 million homes. By year-end, Mediacom expects to bump that to 2.5 million homes, or roughly 88 percent of total homes passed.

Mediacom added 13,000 Internet subs, versus 22,000 a year ago. It ended the quarter with 613,000 high-speed customers, a penetration rate of 21.6 percent.

Advanced service adds also contributed to higher per-customer numbers. Mediacom said the average total monthly revenue per basic sub rose to $80, compared to $74.85 a year earlier.

The company lowered guidance for full-year 2007. It now expects revenue growth of 7 percent to 8 percent, versus earlier projections of 8 percent to 9 percent.

— Jeff Baumgartner, Site Editor, Cable Digital News

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