Earnings Call Excerpt
Mediacom Communications Corp. (MCCC)
Q3 2007 Earnings Call
November 6, 2007, 10:30 a.m. ET
Executives
Rocco Commisso - Chairman and Chief Exec. Officer
Mark Stephan - Chief Financial Officer
John Pascarelli – Executive VP of Operations
Analysts
Robert Dezego – Bank of America Securities
Jason Bazinet – Citigroup
Qaisar Hasan – Buckingham Research
Bryan Kraft - Credit Suisse
Michael Pace - JPMorgan Chase
Thomas Eagan – Oppenheimer & Co.
Presentation
Operator
Welcome to Mediacom Communications’ 3rd quarter 2007 earnings conference call.
I am pleased to announce our Chief Executive Officer and Chairman, Mr. Rocco Commisso and John Pascarelli, the Executive Vice President of Operations. Here with our opening remarks is Mark Stephan, our Executive Vice President and Chief Financial Officer.
Mark Stephan
Welcome to Mediacom’s 3rd quarter 2007 conference call. In our call today, we will be making statements about expected future events and financial results that are forward-looking and are subject to risks and uncertainties. Please see the reports and documents we file from time to time with the SEC, including our Form 10-K, for a description of the risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements. We have made disclosures on our earnings release and we will make comments on this call that reference non-GAAP measures. In our earnings release, we provide a discussion regarding our use of non-GAAP financial measures and a reconciliation of such measures to their most comparably GAAP measures.
With that done, let us turn it over to Rocco for his opening remarks.
Rocco Commisso
Thanks, Mark and good morning everyone, and thank you for joining us again. Our 3rd quarter results show that our business continues to grow both operationally and financially. Year-over-year, revenues increased by 7.4%, adjusted OIBDA by 5.4%, and RGUs grew by 5.4%. Net RGU additions this quarter were 40,000, more than double that of the seasonally weak 2nd quarter, but lower than the 57,000 RGU adds in the 3rd quarter of last year.
Despite softer than expected net RGU growth this quarter, we are pleased with the improved product mix as customers increasingly embrace our multiple-product platform. More profitable double- and triple-play customers are replacing video-only subscribers, as reflected by the dramatic 12% increase in year-over-year total ARPU. We expect these favorable trends to continue, as our advanced video, data and phone services become more widely accepted in our markets."
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