Cox posts revenue boost in broadband, bundles

Fueled by growth in bundled offerings, broadband and cable telephony, Cox Communications today reported fourth-quarter revenue growth of 18% compared with the year-ago period.

For the quarter ending Dec. 31, the company posted revenues to $1.3 billion, up from the $1.1 billion reported in Q4 2001 and including a $255.2 million pre-tax gain resulting from a number of items. Net income for the quarter was $179.6 million compared with a net loss of $105.2 million for the fourth quarter of 2002.

For the full year, revenues increased 18% to $5 billion. Including one-time gains and losses, Cox posted a net loss of $274 million for 2002, significantly better than the $755 million loss reported in 2001.

The company added 135,650 high-speed Internet customers in the fourth quarter, giving it a total of 1.4 million broadband subscribers at year-end 2002, a 59% increase compared with 2001.

Cable telephony showed strong growth as well, with 67,190 customers added during the quarter. The company’s year-end telephony customer count was 718,420, up 58% year over year.

With the increasing penetration of both phone and broadband service, often in bundled packages, Cox announced that it sells an average of one revenue-generating service for every home the company’s networks pass.

“To an industry that’s traditionally defined itself by basic penetration, this is a wakeup call to our new reality, said Pat Esser, Cox’s executive vice president for operations. “We are no longer simply a cable company. The digital bundle is our growth engine, now and in the future.”

For 2003, the company is forecasting revenue to increase by 14% to 15%. Capital expenditures are expected to be approximately $1.6 billion, and the company expects to be free cash flow positive for the full year 2003.