RCN 4Q Earnings Beat Expectations

RCN Corp., in its first quarterly earnings report since buying NEON Communications Group Inc., topped analysts’ expectations for fourth-quarter revenue.

The regional cable provider on Tuesday said sales jumped 11 percent in the fourth quarter of 2007. The numbers went from $150.6 million a year earlier to $167.9 million. Analysts had expected revenue of $160.2 million, according to experts polled by Thomson Financial.

RCN attributed the gains to the addition of thousands of customers and pricing increases. Commercial sales grew 55 percent.

Still, the New York-based RCN did lose more money in the fourth quarter than it did in 2006. Losses totaled $32.4 million; they stood at $24.7 million in 2006.

Thanks to the acquisitions of ConEd and NEON, though, RCN expects to grow significantly in 2008.

“RCN's 2008 outlook is positive as we balance our free cash flow objectives, growth opportunities, and record-breaking operating targets,” said Peter Aquino, president and CEO.

RCN serves metro markets in the Northeast and Mid-Atlantic regions as well as Chicago. Company executives told analysts on a conference call that a slowing economy isn’t hurting their business, nor is Verizon’s footprint, which overlaps with RCN’s.

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