Cox Communications reported Q3 revenue of $1.6 billion, an increase of 11% over last year, primarily due to growth in digital cable, high-speed Internet access and telephony, as well as higher basic cable rates. Operating income increased 14% to $183.8 million for the third quarter of 2004, and operating cash flow increased 8% to $584.7 million for the same period. Some highlights:
- Ended Q3 with approximately 6.3 million basic video customers, up 0.4% from September 30, 2003.
- Ended the quarter with over 6.6 million total customer relationships, up 1.4% from September 30, 2003.
- Ended the quarter with approximately 12.3 million total RGUs, up 11% from September 30, 2003, driven by 25% growth in advanced-service RGUs year-over-year.
- Added 72,868 Cox Digital Cable customers, ending the quarter with approximately 2.4 million digital cable customers, representing year-over-year customer growth of 14%. Cox Digital Cable is now available to 99% of the homes in Cox's service areas with 37% penetration of our basic video customer base.
- Added 184,446 high-speed Internet customers, the most Cox high-speed Internet customers ever added in a quarter. Cox ended the quarter with over 2.4 million high-speed Internet customers, representing year-over-year growth of 32%.
- Added 82,596 Cox Digital Telephone customers, the most Cox Digital Telephone customers ever added in a quarter. Cox ended the quarter with over 1.2 million telephone customers, representing year-over-year growth of 33%.
- Generated $566.3 million in cash flows provided by operating activities and $175.4 million in free cash flow (cash flows provided by operating activities less capital expenditures).
- Cox Communications launched its Digital Telephone service in Tulsa, Oklahoma -- its second market to use VoIP. In December 2003, Cox launched residential VoIP service in Roanoke, Virginia. The company offers circuit-switched Digital Telephone service in 12 other markets.
