AT&T Broadband adds advanced service subs in Q3,
but sheds more basics

Jeff Baumgartner, CED
From the October 22th edition of CED Broadband Direct

In what will likely be the last earnings call for AT&T Broadband before merging with Comcast Corp. sometime before the end of 2002, the MSO reported third quarter revenue of $2.5 billion, up 8.2 percent on a pro forma basis, and up 6.4 percent on a reported basis. AT&T Broadband said the jump was fueled primary by the addition of new cable telephony, high-speed data and digital video subs during the quarter.

More specifically, AT&T Broadband said it added 559,000 net revenue-generating units (RGUs) during the period, including 285,000 digital video subscribers, 172,000 cable modem subs, and 102,000 telephony customers. Despite growth in those advanced service areas, the MSO said it lost 129,000 basic video subscribers during the quarter, chalking it up to competition.

The MSO also reported an EBITDA margin of 22.3 percent, excluding other income, and 26.5 percent excluding other income and Comcast merger-related costs.

AT&T Corp., the MSO’s parent company for now, reported third quarter earnings of 6 cents per diluted share, versus a loss of 2 cents per share in the same period of 2001. The company also said revenue dropped 8.3 percent to $12 billion from the year-ago quarter and 7.4 percent on a pro forma basis adjusted for “significant” dispositions and the deconsolidation of Excite@Home.