Highlights of 2nd Quarter Earnings for News Media
Second Quarter 2004 Earnings Highlights:
Revenue Generating Units (RGU) Highlights:
- Ended the quarter with approximately 6.3 million basic video customers, up 0.6% from June 30, 2003.
- Ended the quarter with approximately 6.6 million total customer relationships, up 1.8% from June 30, 2003.
- Ended the quarter with over 11.9 million total RGUs, up 12% from June 30, 2003, driven by 27% growth in advanced-service RGUs.
- Added 60,351 Cox Digital Cable customers, ending the quarter with approximately 2.3 million digital cable customers, representing year-over-year customer growth of 18%. Cox Digital Cable is now available to 99% of the homes in Cox's service areas with 36% penetration of our basic video customer base.
- Added 97,517 high-speed Internet customers, ending the quarter with over 2.2 million high-speed Internet customers, representing year-over-year customer growth of 34%.
- Added 66,265 Cox Digital Telephone customers, ending the quarter with over 1.1 million telephone customers, representing year-over-year customer growth of 35%.
- Ended the quarter with approximately 2.5 million bundled customers, up 29% from June 30, 2003.
- For the quarter, Cox posted total revenue growth of 12% and operating cash flow growth of 16%. (Operating income before depreciation and amortization and gains or losses on the sale of cable systems.)
- For the quarter, commercial revenues from Cox Business Services increased 23%.
- Advertising revenue from Cox Media grew 9% in the second quarter.
- Generated $155 million free cash flow in the second quarter of 2004 supported in part by a 4% decrease in capital spending.
- Cox generated operating cash flow margin improvement of 120 basis points over the prior year quarter - the 6th consecutive quarter of year-over-year operating cash flow margin improvement.
- For 2004, Cox expects revenue to increase by 11.5% to 12.5% over 2003.
- Operating cash flow is expected to increase by 14% to 15% over 2003.
- Basic video customer growth over 2003 is expected to be just under 1% and advanced-service RGU net additions are expected to be between 1.0 and 1.1 million.
- Full-year capital expenditures of approximately $1.35 billion to $1.40 billion.
- Cox expects to be free cash flow positive for the full year 2004.