Cox 2nd-Quarter Loss Wider Than Expected

Cox Communications Inc., the fifth-largest U.S. cable television operator, had a wider second-quarter loss as costs and depreciation expense rose, and the company cut its subscription growth estimate.

The loss from operations widened to $89.5 million, or 15 cents a share, from $13 million, or 2 cents, in the year-earlier quarter, the company said.

Cox lowered its 2001 forecast for growth in cable TV subscriptions to 1%, from 1.5% to 2%, because of slower second-quarter demand Chief Financial Officer Jimmy Hayes said “will be difficult to overcome.” The company said it didn’t sign up as many cable TV customers as expected because it lacked a marketing campaign in the first two months of the quarter.

“This is a little more severe than I would have expected,” said SG Cowen Securities analyst Gary Farber, who has a “buy” rating on the stock. “There’s been a slow drop-off over the last three quarters [in subscriber growth] because” 85% of homes are spoken for” with cable or satellite TV service.

Second-quarter sales rose 14% to $1 billion, from $879 million. Depreciation expense increased 28% to $270 million from the year-earlier period, and selling, general and administrative costs rose 17% to $378 million, the Atlanta-based company said.