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.