Washington Post 2005 Annual Report Download - page 11

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2005 ANNUAL REPORT 9
Operating income at Cable ONE fell from
$104 million in 2004 to $77 million in 2005.
And that’s the last bad thing you’ll hear from me
about Cable ONE’s performance last year. This
innovative company, under CEO Tom Might, hit on
unique approaches for everything from marketing
to telephone service. Tom has the Cable ONE
team in a strong position to compete today and in
the strongest possible position for tomorrow.
The 2005 shortfall was primarily the result of
Hurricane Katrina’s effects on the Mississippi Gulf
Coast communities where 13% of Cable ONE’s
subscribers live. Cleanup and repair were costly;
there are 22% fewer subscribers than before
(because their homes were destroyed — we
restored service to 100% of occupied homes with-
in 60 days of the hurricane). Cable ONE’s
Mississippi associates worked heroically. Many had
lost their own homes, but worked the hours need-
ed to serve their neighbors and their community.
Cable ONE’s problems were sub-minuscule
compared with the sufferings of the Mississippi
communities we serve. We’ve been lucky to do
business in Gulfport, Biloxi, Pascagoula, Long
Beach and our other Gulf Coast markets. We look
forward to participating in their rebuilding.
(Obviously, Mississippi damage will continue to
affect Cable ONE’s results through 2006.)
What’s exciting about Cable ONE’s results:
Cable modems were up by 55,700: our
31% growth rate was among the highest in
the industry.
Putting Hurricane Katrina expenses aside, expense
and capital expenditure per sub continue the long
tradition of being about the best in the industry
every year.
Internal research on customer satisfaction
reported a new,ten-year high. External JD
Power research continued to rank Cable ONE
near the top of the cable industry as well.
Basic subscriber growth in the second half of
2005, outside the Gulf Coast, was the highest
since 1995.
2006 will be a big year for Cable ONE. We’ll roll
out telephone service to 60% of our subscribers.
▼▼▼
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2006 will be a big year for Cable ONE. We’ll roll out telephone service
to 60% of our subscribers.