DAVIDSON – The MI-Connection board of directors recently released their budget for fiscal year 2014 and shared their third quarter 2013 results and product updates.
CEO David Auger said the cable company, which serves Cornelius, Davidson and Mooresville, projects total revenues to hit $18,570,683 in the next fiscal year, an 8.7 percent increase over 2013.
Auger told The Herald Weekly that the number of people leaving the service was down 24 percent from this time last year.
He anticipates being able to pay $1.6 million toward MI-Connection’s outstanding debt in 2014, with the towns of Mooresville and Davidson covering the rest of the annual $7.3 million payment. This company’s ability to pay is up from contributing $955,000 in 2013 and $277,000 in 2012.
The expected 2014 budget notes a $5,680,490 subsidy from the towns of Mooresville and Davidson, an amount down 10.2 percent from fiscal year 2013. The budget for the fiscal year beginning July 1 passed unanimously.
Auger also shared results from the third quarter of 2013, which ended March 31, 2013. Revenue is up by 5.8 percent, and expenses are up 7.3 percent compared to the same time last year.
“This is by far the strongest third quarter in the history of the company,” Auger told the board. “We have the trajectory of a very healthy cable system. We have 19 quarters of history under our belt, our customer base is more profitable and our competition just can’t show this type of growth.”
Per-customer revenue grew by $3.10 this quarter to almost $92 per month, Auger said, due to an increase in the amount of pay-per-view, video-on-demand, phone and Internet packages bought.
In March, customers accessed a new video-on-demand platform, which offers a wider selection of pre-loaded programming, a better user-interface, increased reliability and more high-definition choices.
MI-Connection’s TVEverywhere product, which is accessible on mobile devices, will add HBO Go and Max Go to its offerings in June. Other upcoming additions include CNBC, MSNBC, USA, NBC Sports, E! and the Golf Channel.
“We’ll be getting movies 30 days sooner than Netflix,” Auger said.