Fitch: Diversification Is Positioning Growth of U.S. Cable MSOs.CHICAGO -- U.S. cable multiple system operators (MSOs) continue to diversify their customer and revenue bases, setting the foundation for future revenue growth and average revenue per user (ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. ) expansion), according to Fitch Ratings Fitch RatingsAn international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . Cable MSOs added a record 2.95 million revenue-generating units (RGUs) in Q1 of 2006, 69% higher than the RGU RGU The Robert Gordon University (Aberdeen, Scotland) RGU Responsible Governmental Unit RGU Revenue-Generating Unit growth for the prior-year period and 29% higher on a sequential basis. The MSOs added approximately 891,000 digital subscribers in Q1, reflecting a 71% year-over-year increase and the MSOs offering of a more robust video service. Subscriber growth for high-speed data and other services was also up across the industry. Fitch attributes the continued stability of the basic subscriber base in part to the success cable MSOs are having with the introduction of telephony service and their triple-play offering. Fitch also believes that enhancements to the video on demand, digital video recorders (DVRs), and the high-definition tier also contribute to this stabilization. The Fitch Ratings report, 'Quarterly Cable MSO (1) (Multiple System Operator) Typically refers to a cable TV organization that owns more than one cable system, but it may refer to an operator of only one system. Aggregates and Comparative Statistics,' is intended to provide investors a source of timely information and analysis of operating trends in the U.S. cable industry and its key operators. Aggregate financial information is tracked for the top seven U.S. MSOs. The full report is available on www.fitchratings.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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