Data, digital lead Insight gains

Propelled by gains in high-speed data and digital TV services, Insight Communications today reported first-quarter revenue of $192.2 million, a 10.3% increase over the previous year’s quarter and operating cash flow of $81.7 million. Company executives also said that the first quarter is typically the weakest, with programming rate increases, employee raises and other expenses occurring at that time. The company also took a hit relating to the demise of Excite@Home.

Insight reported a 9.7% growth in revenue-generating units--the total of basic, digital, video, high-speed data and telephone users--to 1,540,799 units and monthly revenue per customer of about $49.46--a 9% increase over the previous year. Even so, executives anticipate a rate increase in the June/July time frame of about 6%.

The results paralleled first-quarter results announced by other cable service providers that seem to be reaping the rewards of long-term plant rebuild/upgrade efforts.

“This is the best quarter of operations that we’ve experienced in quite a number of years,” said President Michael Willner, laying credit on a philosophy of “invest in the plant, create the infrastructure, launch new services.”

Willner also tipped his hat to his cable industry brethren, noting, “We are not the only company experiencing good results during the first quarter. Those of us who have invested in the plant and created new services for our customers are finding similar results.”

The execution risk, Willner said, “is behind us,” and capital expenses going forward will be in new businesses that have a very specific rate of return expectation and more success-based as opposed to at-risk.

A primary capital expense still looming is $300 million for rebuilds in Illinois--which is expected to be substantially completed by year-end--telephony deployment and interactive digital expansion.