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RCN Posts Flat Q4 Results

RCN is struggling just to hold its own these days. More than a year after emerging from bankruptcy, the one-time high-flying cable competitor reported flat revenues and subscriber totals for the fourth quarter and full year in financial results released Wed. RCN said it closed out 2005 with 409,000 overall customers, down 2,000 from the end of September and down 16,000 from the end of 2004. Total revenue generating units, however, edged up 2,000 over the course of the year to 887,000, as a small increase in cable modem customers offset a combination of smaller declines in voice and video subscribers. RCN generated $140 million in total revenue in Q4, up a smidgeon from $139 million in Q3 and even with last year's final quarter. For the year, the company reported $561 million in total revenue, down ever so slightly from $562 million in 2004. In the brightest sign, RCN said 68% of its customers now take product bundles, up from 67% at the end of September and 63% at the end of 2004. In addition, the MSO's average monthly revenue per customer inched up to $103 in the fall quarter, up from $102 per customer three months earlier and $97 per customer a year earlier. Despite the generally flat results, RCN officials insist that the company's outlook is positive. They say RCN has begun laying new plant and growing again after focusing almost entirely on cost-cutting over the last two years.
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