@Home Networks Inc, the internet over cable provider that earlier this week announced that it was acquiring Excite Inc for $6.7bn in stock, reported slightly more mundane figures last night in the form of its fourth quarter and year-end results for 1998. It shows 331,000 subscribers out of the 13.2 million homes able to access its system – a penetration rate of just 2.5%, which no doubt it is hoping the Excite content and services will help improve. The Redwood City-based company that is owned mostly by cable providers such as Tele-Communications Inc (TCI), Cox Communications, Comcast Communications and Cablevision Systems Corp, hit fourth quarter estimates in the head with a six cents per share loss before any charges, which was in line with First Call’s average estimate. At the current pace @home is scheduled to become profitable in the fourth quarter of the current fiscal. The company reported fourth quarter net losses of $64.9m including $57.4m in distribution and acquisition charges, up from losses of $21.0m, which included similar charges amounting to $9.2m. Fourth quarter revenues rose to $19.2m, from $3.7m the same quarter last year. During the quarter the @Home cable modem- based service was launched in 15 new markets in the US and Canada, bringing the total to 59. Once the acquisition of TCI by AT&T Corp is completed, which will probably be during this quarter, the telephone giant will be the controlling minority shareholder in @Home. In January the two companies announced a 10-year deployment agreement, and initial roll-out of capacity supporting five million users is scheduled to be deployed by mid-1999. During the quarter the company also acquired Narrative Communications for its Enliven rich media ad banner development products. Cash and equivalents at the end of the year totaled $419m, up from $120m at the end of 1997. Net losses for the year were $144.2m, after $104.4m in charges, up from losses of $55.7m the previous year, which included $9.2m in charges. Revenues for the year were up to $48.0m, from $7.4m in 1997. All 1997 figures are restated to reflect a change in accounting practices relating to the October 1997 agreement with Cablevision, through which cablevision got a stake in @Home.
