Yet another cable operator has reported that it made money in the first quarter while losing video subscribers. Knology (Nasdaq: KNOL) said it gained a total of 6,729 customers (5,159 data and 2,126 voice) but lost 556 video subs, continuing with a trend started by its larger cable brethren of making money on data and telephony and watching video viewers recede.
Knology Chairman-CEO Rodger Johnson said the company "achieved all-time records for revenue ($128 million, up 16.2 percent over 2010), EBITDA ($47.4 million, up 26 percent over 2010) and net income ($11.4 million, up 356 percent over 2010). We also experienced growth in connections, including connections from our legacy footprint as well as continued growth from our high ROI edge-out network expansion."
The video subscriber loss trend is expected to continue Thursday when Time Warner Cable (NYSE: TWC) announces its first quarter results. Morgan Stanley analyst Benjamin Swinburne is already on record suggesting TWC will drop about 60,000 more subscribers--less than the 141,000 who left in the same period but unimpressive compared to the gains Verizon (NYSE: VZ) FiOS and AT&T (NYSE: T) U-verse showed in their results.
- see this news release
- Forbes.com has this story
Knology 'whiffed' on price hike
Knology's honesty a breath of fresh air for stale earnings reports
Same old story: Time Warner Cable (NYSE: TWC-WI) revenues up, basic subscriber numbers down
Where have all the cable subscribers gone? FiOS and U-verse