Highlights of Cox’s First Quarter Financial Results for News Media
First Quarter 2004 Earnings Highlights:

Revenue Generating Units (RGU) Highlights:

  • Ended the quarter with approximately 6.4 million basic video customers, up 0.8% over the same quarter last year.
     
  • Ended the quarter with 11.8 million total RGUs, up 12 % year over year, driven by 29% growth in advanced-service RGUs.
     
  • Added 76,813 Cox Digital Cable customers, ending the quarter with over 2.2 million digital cable customers, representing year-over-year customer growth of 18.7%. Cox Digital Cable is now available to more than 98% of the homes in Cox's service areas with 35% penetration of our basic video customer base.
     
  • Added 161,442 Cox High Speed Internet customers, ending the quarter with more than 2 million high-speed Internet customers, representing year-over-year customer growth of 38%.
     
  • Added a record 78,959 Cox Digital Telephone customers, ending the quarter with more than 1.0 million telephone customers, representing year-over-year customer growth of 37%. The service, now available in 12 Cox markets, is available to about 50% of homes passed, or over 5 million households.
     
  • Cox ended the quarter with 2.4 million bundled customers - an increase of 33% year over year. Today 38% of basic cable customers subscribe to a bundle of services (at least two services) from Cox.

Financial Highlights:

  • For the quarter, Cox posted total revenue growth of 13% and operating cash flow growth of 18%. (Operating income before depreciation and amortization and gains or losses on the sale of cable systems.)
     
  • For the quarter, commercial revenues from Cox Business Services increased 25%.
     
  • Advertising revenue grew 10% in the first quarter-the strongest quarterly growth rate in five quarters.
     
  • Generated $84 million free cash flow in the first quarter of 2004.
     
  • Cox generated operating cash flow margin improvement of 170 basis points over the prior year quarter.

2004 Outlook:

  • For 2004, Cox expects revenue to increase by 11.5% to 12.5% over 2003.
  • Operating cash flow is expected to increase by 14% to 15% over 2003.
  • Basic video customer growth over 2003 is expected to be just under 1% and advanced-service RGU net additions are expected to be between 1.0 and 1.1 million.
  • Cox expects to be free cash flow positive for the full year 2004.
     

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