Cox Communications says it has surpassed 5 million digital service subscriptions in January by reaching “key customer milestones” in its digital video, Internet and telephone services.

Today, the Atlanta-based company has 2 million digital cable television subscriptions, 2 million high-speed Internet subscriptions and 1 million digital telephone subscriptions.

“We are thrilled with the continued growth of our suite of digital services in this increasingly competitive environment,” said Pat Esser, Cox’s chief operating officer. “These milestones illustrate that Cox is the provider of choice to our customers in the delivery of a true bundle of video, Internet and telephone services.”

Cox Digital Cable is available to 98 percent of all homes in Cox markets, and more than one-third of its video customers choose digital cable service over traditional analog cable.

The company’s fastest-growing service, Cox High Speed Internet, experienced year-over-year growth of 41 percent in 2003. Seven out of 10 broadband customers in its markets have Cox High Speed Internet instead of DSL service, exceeding the 64 percent nationwide penetration of cable modem service.

In its most mature markets, the company says one in three homes have Cox Digital Telephone. In 2003, Cox grew its residential telephone customer base by 38 percent.

Cox also recently reported its financial results for 2003 and the fourth quarter, saying it halved its loss for the year, despite a $450-million loss from debt extinguishment.

The company posted a net loss of $137.8 million on $5.8 billion in revenue in 2003, compared with a net loss of $274 million on $5 billion in revenue in 2002. Loss per share was 22 cents in 2003, an improvement over a loss per share of 45 cents in 2002.

In the fourth quarter, Cox posted a net loss of $11.3 million on $1.5 billion in revenue, compared with net income of $179.6 million on $1.3 billion in revenue in the fourth quarter of 2002. Loss per share in the fourth quarter was 2 cents, compared with earnings of 28 cents a share in the same quarter of 2002.

“Customer demand for the tremendous value of our bundled video, voice and high-speed data services drove strong growth for Cox Communications in the fourth quarter of 2003, and contributed to a record year of financial and operating performance,” said Jim Robbins, president and CEO of Cox. “We expect this significant momentum will propel sustained positive free cash flow in 2004 as we continue to deploy our successful three-product bundle in additional markets.”

Cox Communications: