Prodigy Communications Corp, the White Plains, New York ISP and web hosting company met analyst’s expectations for its third quarter results yesterday and said it is in the process of securing $140m in funding to meet the requirements of its growing subscriber base. The company could not get back to us by press time to say from where the funding is coming.
The company posted net losses of $0.39 per share, or $23.6m, after $8.6m in amortized subscriber acquisitions costs. That’s up from losses of $15.7m a year ago that didn’t include such costs. Revenues in the quarter were up 43.2% to $48.9m.
Total internet subscribers managed rose to 1.2 million on the back of some retail channel deals, an acquisition of a web hosting company and the transfer of about 75,000 Cable & Wireless Inc subscribers, following the deal it struck back in May to take the subscriber base off C&W’s hands. At the time of the deal Prodigy said it was hopeful of winning over between 125,000 to 200,000 subscribers but that clearly hasn’t happened. Still the fewer Prodigy converts, the less it has to pay C&W.
The managed number also includes about 260,000 Prodigy Internet de Telmex customers that the company manages on behalf of Telefonos de Mexico, for which Prodigy gets a management fee. The balance sheet as of September 30 showed cash and equivalents totaling $10.4m and subscriber acquisition costs of $144.0m.
