• by Wayne Friedman , August 6, 2010

Mid-size cable system operator Mediacom Communications slipped back into some red ink for its second-quarter reporting period.

While some newer businesses improved -- high-speed Internet and phone services -- the company witnessed, as most cable operators have, a slowdown in basic cable customers. Operating income was essentially flat at $77.2 million versus the second quarter of 2009.

But it also recorded a net loss of $3.8 million --- this versus a $34.4 million net profit it made in the second quarter of 2009. The company said this was due to a $29.1 million loss on derivatives, as compared to a $26.0 million gain on them in the previous comparable period. Some of this was offset by a $14.5 million provision for income taxes.

Mediacom quickened its erosion of basic subscribers -- losing 18,000 basic subscribers, compared to a loss of 15,000 in the prior year period. Mediacom did add 6,000 digital customers to get to 705,000 -- that's 58.0% of the basic subscribers base. The company has added 47,000 digital customers during the year, for a 7.1% growth rate.

Revenue was at $377.0 million, up 3.4% from the second quarter of 2009. Average total monthly revenue per basic subscriber rose 8.9% to $102.59.

High-speed Internet access revenues was 10.4% higher to $97.5 million, as the company gained 8% more customers to 814,000 -- 29.0% of Mediacom's wired homes.

Phone revenues improved 9.9% to $30.8 million, gaining 17,000 phone customers to end the quarter with 317,000 -- a 12.0% penetration rate of Mediacom's homes. The year-over-year increase amounted to 50,000 phone customers, for an 18.7% gain.

Ad revenues climbed 14.0% to $16.7 million, from a rebound in automotive and political advertising sales.