MI-Connection reported an increase in revenue and a decrease in expenses in the last three months of 2012 compared to the same period of 2011, but because of its large debt and interest payments, it continued to lose money, the company reported.Revenue for the government-owned cable and Internet provider was up 4.2 percent from 2011 to 2012, and expenses were down by 4.4 percent, resulting in an 85.3 percent increase in earnings before interest, depreciation and amortization, MI-Connection CEO David Auger said. But payments on the company’s $78.7 million debt dragged it into the red, and its net loss for the quarter was $1.35 million. That, however, was substantially less than the $1.66 million it lost in the second quarter of 2011.Company officials said they were encouraged by the direction of the company.“What I’m most encouraged about is the change in perception in the marketplace,” board of directors chairman John Venzon said. “Two years ago we were on the front page of too many publications with the theory that if it bleeds, it leads.”Mooresville and Davidson have subsidized the system each year since buying it in August 2007. And while many officials over the years have said that government has no business competing against private industry, they say bond financing obligations prohibit the towns from selling the system until at least 2017. In the interim, officials and MI-Connection board members have launched on a campaign to make the company as marketable as possible by reducing its debt, improving its infrastructure and growing its customer base. Here are some of the highlights of Auger’s most recent report to the board: • The total revenue for the quarter ending on Dec. 31 was $4.12 million, up from $3.95 million in the second quarter of the previous year.• Expenses for the quarter were $3.41 million, down from $3.57 million in the same quarter of the previous year.Also during the presentation, Auger discussed the system’s Internet technology upgrade for all residential customers in Davidson, Cornelius and Mooresville. Subscribers now receive enhanced download and upload speeds. “Warp Speed Broadband” is a 60MB offering downstream and 10MB offering upstream.Auger also discussed some upcoming plans for the system. For instance, in February 2013, subscribers will get TV Everywhere, allowing subscribers to view specific, archived programming on iPads and other mobile devices. In March, customers will be able to access a new, video-on-demand platform, which will enable viewers to select from a wider variety of pre-loaded programming, offering a better user-interface, increased reliability and more high-definition choices.MI-Connection has partnered with the Business Center at South Main Square in Davidson to offer video-conferencing services. There will be an open house on Feb. 19 to showcase the product.“Why video conferencing when you have Skype? It’s more professional,” Auger said. “We think it will be a great source of revenue.”The company also launched the second phase of its advertising campaign recently, emphasizing a community-owned, buy-local theme. The campaign features testimonials from MI-Connection customers, including the owners of Epic Chophouse in Mooresville.“We have wildly successful entrepreneurs who are willing to lend their names for this and pose for these photographs. You don’t do this if you think it’s negative brand association,” Venzon said. “That they’re willing to loan their name to co-brand with our name – I’m pretty proud of that.”Auger also said the company had renegotiated its deal with Charlotte television station WCNC-TV. The station had been seeking a 161 percent increase in the cost to MI Connection in 2013, which Auger called outlandish and absurd. He said the two sides had verbally agreed to a 104 percent increase.