Cox Communications reported total quarterly revenue of $1.5 billion, an increase 15% compared to a year ago, based on significant growth in all its major service categories. The increase was attributed to growth in advanced service subscriptions (including digital cable, high-speed Internet access and telephony), higher basic cable rates and a $5 price increase on monthly high-speed Internet access adopted in select markets in Q4 2002. Cost of services, which includes programming costs, other direct costs and field service costs, was $622.2 million for Q3 2003, an increase of 15% over the same period in 2002. Operating income increased 46% to $161.4 million for Q3 2003, and operating cash flow increased 20% to $543.5 million. Some additional highlights:
- the company increased its guidance on advanced-service revenue generating units (RGUs) from the original guidance of 1.0 million to 1.1 million net additions. The company now expects to add 1.1 million to 1.2 million advanced-service RGUs in 2003 driven by bundled offerings. The company expects to be free cash flow positive for the full year 2003.
- ended the quarter with just over 6.3 million basic video customers, up 0.7% from September 30, 2002.
- ended the quarter with 11.1 million total RGUs, up 4% for the quarter, driven by 8% growth in advanced-service RGUs. Total RGUs and advanced-service RGUs were up 12% and 33%, respectively, compared to September 30, 2002.
- achieved Cox Digital Cable net additions of 121,744 customers, ending the quarter with just under 2.1 million digital cable customers. Cox Digital Cable is now available to 98% of the homes in Cox's service areas with penetration of its basic video customer base exceeding 32%.
- added 169,290 high-speed Internet customers, a record net add quarter, ending the quarter with 1.8 million high-speed Internet customers.
- added 73,019 Cox Digital Telephone customers, ending the quarter with 0.9 million telephone customers, representing year-over-year growth of 40%.
- reduced capital expenditures to $382.7 million for the quarter, down 8% from the third quarter of 2002.
