Adelphia loses cash in Q3, spins off subsidiary

Adelphia Communications today posted a loss for the third quarter and announced plans to spin off its 79% stake in telephone company Adelphia Business Solutions to shareholders.

Though revenues increased to $898.6 million, the cable TV operator’s third quarter net loss increased to $267.2 million, or $1.54 per share, from $145.4 million, or $1.06 per share, for the same period last year.

EBIDTA increased to $357.1 million compared with $280.3 million for the quarter ended Sept. 30, 2000 because of growth in digital cable and high-speed Internet services.

Basic cable subscribers grew 0.8% to 5,693,035; the DSL subscriber base grew to 1,682,371 from 522,721; and the high-speed data subscriber base grew to 315,104 from 104,915 for the twelve-month period ended Sept. 30. Gross revenue and EBIDTA from consolidated operations grew 12.2% and 17%.

The spin-off of Adelphia Business Solutions, which provides local telecom service to businesses, is expected to occur by March 31, 2002. Adelphia Business Solutions had revenues of $116.3 million for the third quarter, about 12.9% of total revenues. Adelphia Communications may provide up to $100 million in additional credit support to the subsidiary in connection with the spinoff.

--Amalia D. Parthenios, staff writer