Excite Drags Cox into Red

13 February 2002

US cable operator Cox Communications has reported a fourth-quarter net loss of $110.1 million, widening year-on-year from $71.6m in Q4 2000.

As with rival Comcast Corporation [WAMN: 07-Feb-02], the group was hit by the cost of transferring broadband subscribers to its own network from that of now-bankrupt provider Excite@Home. Such necessities prompted a charge of $155.7m.

In spite of an 11% slump in ad sales, the cable company managed a 14% increase in overall revenues to $1.08 billion, while operating cash flow tumbled 28% to $276.7m.

Cox expects a 14%–15% rise in revenues in 2002 and growth in operating cash flow of 13% to 14%. However, having lost out in the race to acquire AT&T Broadband [WAMN: 20-Dec-01], it is not looking to make any acquisitions.

Data sourced from: Wall Street Journal; additional content by WARC staff