WOW! Revenues Dip in Q2 Amid Reduction in TV, Phone Subs

ENGLEWOOD, Colo. -- WideOpenWest, Inc. (“WOW!” or the “Company”) (NYSE: WOW), a leading, fully integrated provider of residential and commercial high-speed data, video and telephony services to customers in the United States, today announced financial and operating results for the second quarter ended June 30, 2019.

Revenue
For the quarter ended June 30, 2019, Total Revenue decreased 0.5% to $289.7 million compared to the quarter ended June 30, 2018, which was driven primarily by a reduction in Video and Telephony RGUs, partially offset by growth in HSD RGU’s, increases in ARPU and Business Services Subscription Revenue growth.

Total Subscription Revenue for the quarter ended June 30, 2019, was $266.4 million, down $3.4 million, or 1.3%, compared to the quarter ended June 30, 2018. Residential Subscription Revenue was $232.1 million, down $5.1 million, or 2.2%, compared to the quarter ended June 30, 2018. Business Services Subscription Revenue, totaled $34.3 million, up $1.7 million, or 5.2%, compared to the quarter ended June 30, 2018. Costs and Expenses
Operating Expenses (excluding Depreciation and Amortization) totaled $144.4 million for the quarter ended June 30, 2019. Selling, General, and Administrative expenses were $47.6 million for the quarter ended June 30, 2019.

Net Income and Earnings per Share
Net Income for the quarter ended June 30, 2019, was $9.4 million, compared to Net Income of $24.6 million for the quarter ended June 30, 2018. Diluted Earnings Per Share for the quarter ended June 30, 2019, was $0.12, compared to Diluted Earnings Per Share of $0.30 for the quarter ended June 30, 2018. The year-over-year decrease in Net Income is attributable to greater interest expense and income tax expense. Adjusted Diluted Earnings Per Share for the quarter ended June 30, 2019, was $0.22.

Customers
WOW! reported Total Subscribers of 811,300 as of June 30, 2019, an increase of 11,200, or 1.4%, compared to June 30, 2018. HSD RGUs totaled 765,500 as of June 30, 2019, representing an increase of 17,700, or 2.4%, compared to June 30, 2018.

Edge-Outs
As of June 30, 2019, Edge-Out projects reached 152,600 homes passed as part of the Company’s Edge-Out growth efforts started in 2016.

Capital Expenditures
Capital Expenditures, on a reported basis, totaled $61.7 million for the quarter ended June 30, 2019. Transaction Adjusted Capital Expenditures totaled $56.0 million for the quarter ended June 30, 2019. Transaction Adjusted Strategic Capital Expenditures, defined as Edge-Out Capital Expenditures and Business Services Capital Expenditures dedicated to expansion of the Company’s network, were $11.7 million for the quarter ended June 30, 2019. Excluding Transaction Adjusted Strategic Capital Expenditures, Transaction Adjusted Capital Expenditures for the quarter ended June 30, 2019, totaled $44.3 million, which equates to 15.3% of Total Revenue for the quarter ended June 30, 2019.

WideOpenWest