Cable modem growth leads to
narrower Q2 loss at Charter

By Susan Rush
from CED Broadband Direct, August 6, 2002

Demand for high-speed Internet and digital cable propelled Charter Communications Inc. to a narrower year-over-year loss in the second quarter.

The cabler narrowed its quarterly loss from $273.9 million, or $1.07 a share, to $202.7 million, or 69 cents a share, for the just-ended second quarter. The company posted operating cash flow of $501.1 million. Revenue reached $1.16 billion, which squeaked past an earlier forecast of between $1.15 billion and $1.155 billion.

During the quarter, the company added 157,800 cable modem subscribers and 171,600 digital cable subscribers. As of June 30, Charter had 2.4 million digital cable customers.

Looking ahead, the company expects to post third-quarter revenue in the range of $1.185 billion to $1.2 billion. If the company reaches its goal, revenue will exceed analysts' expectations of $1.177 billion, according to Multex. For full-year 2002, Charter is predicting revenue will be between $4.6 billion and $4.7 billion.

As of 12:31, Charter shares were up 21 cents, or nearly 8 percent, to $2.85.