Earnings

RCN delivered 20% growth in total rev to $187mln, but added only 4K customers sequentially and 15K YOY. Total RGUs increased 4% to approx 915K, with video and data RGUs increasing 3% and 8%, respectively, and voice RGUs remaining relatively flat. Digital penetration rate rose to 78% from 66% a year ago and 75% sequentially. Rev from RCN Metro‘s business services climbed 113% YOY to $42mln. As of Sept 30, the overbuilder counted 428K residential/SMB subs and the following RGUs: 366 video (+1%), 301 HSD (+2%) and 247 phone (-1%). — Viacom said its ad business continued to be negatively impacted by the economy in 3Q, results that were "compounded at a handful of our networks where ratings were lower than expected, particularly at MTV, VH1, and BET II," said pres/CEO Philippe Dauman. Progression in the company’s upfront rev, however, is a positive, he said, as is 13% growth in domestic affil rev due to rate increases and increased subs. To address the lagging viewership, Dauman noted plans to increase original programming, especially at MTV, and a focus on creating functions such as chat to spur viewership of net shows for a 2nd and 3rd time. Experimentation has also begun with new programming blocks to serve demo subsets, and Viacom is "taking steps to smooth out the timing of new and returning launches throughout the year to avoid the type of dip we experienced last quarter," said Dauman. Nickelodeon and Comedy Central continue to perform well, he said.