Cox Communications posts wider loss amid higher programming costs

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Posted 12:29PM on Tuesday, February 12, 2002

ATLANTA - Cox Communications Inc. posted a wider loss in its fourth quarter, hurt by an increase in programming costs and a weak advertising environment. The cable company Tuesday said its net loss came to $110.1 million, or 18 cents a share, compared with a year-earlier loss of $71.6 million, or 12 cents a share. The loss matched a mean estimate from analysts surveyed by Thomson Financial/First Call. Cox, based in Atlanta, saw its fourth-quarter revenue increase 14 percent to $1.08 billion from $945.9 million a year earlier, driven by a 16 percent increase in residential revenue. Advertising revenue declined 11 percent to $92.3 million. Cash flow, a measure preferred by the industry to gauge a cable firm's financial health, fell 28 percent to $276.7 million. Cash flow typically excludes depreciation and amortization. In the latest quarter, programming costs rose 10 percent to $249.4 million. Overall, costs and expenses jumped 16 percent to $650.6 million. For the year, Cox's net income fell 61 percent to $750.1 million, or $1.25 a share, compared with $1.93 billion, or $3.20 a share, in 2000. Revenue climbed 16 percent to $4.06 billion in 2001 from $3.51 billion in 2000. Operating cash flow rose 3 percent to $1.41 billion. Looking ahead, Cox expects revenue growth of 14 percent to 15 percent to between $4.63 billion and $4.67 billion for 2002. Cox estimates 2002 capital expenditures of $2 billion as the company continues its network upgrade and expands its rollout of services.