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Joshua Cho
Starting off the new year optimistically, Atlanta-based Cox Communications, Inc. said last week that it expects double-digit pro forma '99 revenue and operating cash flow growth from its core cable operation and new broadband services.
Cox said that it anticipates pro forma revenue increases of 11%-14% when compared to fiscal year '98. Pro forma operating cash flow is expected to increase by 8%-10% on a year-over-year basis. The company said it expects to reap rewards from new broadband service such as digital television, high-speed Internet access and residential telephony. As such, it said that 67% of its plant will be upgraded to 750MHz two-way interactive capabilities by the end of this year. And by the end of next year it expects to have 80% of its plant upgraded.
The company also said that it expects its customer count to grow by 2.0%-2.5%. It currently has some 3.8 million customers. New residential services-Cox, digital telephony and digital TV-are expected to reach as high as 500,000 revenue generating units (RGU), a measure of the total number of customers subscribing to a service, where each service represents a unique RGU.
The comments came from the Salomon Smith Barney Global Entertainment, Media & Telecommunications Conference, where Cox SVP of finance and CFO Jimmy Hayes said that new services growth would come as the company expanded its footprint for telephone and Internet service.
"We also will continue to focus intently on integrating new services into our core business operations in the year ahead," Hayes said in the statement.
Cox also mentioned growth from its off-balance sheet investments as contributing to the bottom line. Those investments include stakes in AT&T Corp., Sprint PCS and At Home Corp. Cox also recently said that it had sold its 11.9% stake in Telewest Communications plc, a UK-based cable and telephone provider.
A Cox spokesperson said that the company expects to release its fiscal year '98 fourth quarter and year-end results Feb. 17.
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