Mediacom Q1 revenue up 3.4% due to HSI and business services growth

Mediacom lost 4,000 pay TV users, roughly on par with the 3,000 shed in the first quarter of 2017. (Mediacom)

Mediacom saw first-quarter revenue rise 3.4% to $478.4 million, driven by the usual combination of residential high-speed internet and business services growth.

The New York-based operator added 19,000 residential internet users in the first quarter, with revenue from broadband data increasing 8.9% to $178.3 million. The additions were on par with the 17,000 HSI customers Mediacom added in the first quarter of last year. 

Business services revenue also increased by 8.9% to nearly $65.3 million.

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Also keeping with recent trends, Mediacom lost another 4,000 pay TV customers, brining its base to 817,000 users—a 1.8% year-over-year decline. Video revenue was down 2.3% year over year to $195.2 million. Mediacom lost 3,000 pay TV users in the first quarter of 2017, so cord cutting doesn’t seem to be quickening all that much for the midsized operator. 

RELATED: From Comcast to Altice: Tracking Q1 2018 earnings in the pay TV industry

Privately held Mediacom reports revenue conditionally to creditors. There is no earnings call with investors associated with this report. 

The company’s preferred metric, “operating income before depreciation and amortization” (OIBIDA), increased by 2.5% to $179.6 million. Free cash glow increased by 9.5% year over year to $74.7 million. 

RELATED: Mediacom puts up ‘for sale’ sign in glowing Forbes profile of founder Commisso

The solid quarterly report comes two months after Forbes declared the cable operator ready to be sold.

“Thanks to a white-hot mergers-and-acquisitions market, the business is worth an estimated $4.3 billion—and Commisso, who makes his debut on Forbes' Billionaires list this year, seems ready to cash out,” Forbes said in a glowing profile of founder and chief executive Rocco Commisso.

Of course, Wall Street is suddenly cool on cable companies in general, overcome with concerns about pay TV cord cutting, saturation in the wireline broadband market and competition from 5G wireless services.