In the second quarter Excite@Home's residential broadband subscriber base grew to more
than 1,800,000, up 21% from approximately 1,500,000 at March 31, 2000. Total subscribers
are up 190% from approximately 620,000 at June 30, 1999. Net subscriber additions in the
quarter totaled more than 300,000, an increase of more than 90% from about 160,000
subscribers added in the second quarter of 1999. Subscriber additions declined
approximately 10% from the first quarter of 2000, primarily as a result of a temporary
interruption in the supply of cable modems experienced by some of Excite@Home's cable
partners.
Yuck. A sequential decline in sub growth is not what this company needs. I was aware of the cable modem issue and thought it might play a role, but this is a bigger disappointment than I was prepared for. I just hope there is some kind of good spin on the conference call. If it is entirely related to modem shortages then it is a temporary problem. If not, God knows. With 1,800,000 current subs, we have to pick up 1,200,000 in the next 5 months to reach the set goal. That seems extremely unlikely given existing sub addition rates.
I am not thrilled. |
