Cablevision 4Q Net Sinks 47%, Revenue and Video Subs Beat the Street
Cablevision Systems (NYSE:CVC) suffered a slightly worse-than-expected 47% plunge in fourth-quarter earnings due to the absence of certain assets, but the cable company lost fewer video subscribers than had been feared.
The Bethpage, N.Y.-based company said it earned $60.6 million, or 22 cents a share, last quarter, compared with a profit of $113.9 million, or 38 cents a share, a year earlier. Analysts had been calling for EPS of 23 cents.
Revenue rose 7.3% to $1.69 billion, compared with the Street’s view of $1.68 billion.
Cablevision, which is controlled by the Dolan family, said it lost 14,000 video subscribers last quarter. Analysts had been bracing for a loss of 18,000 subscribers. The company said its average monthly revenue per basic video customer rose 1.6%.
Meanwhile, Cablevision boosted its high-speed Internet customers by 20,000.
“Despite modest video subscriber losses, our cable operations continued to report improved subscriber metrics in both high-speed data and voice customers,” CEO James Dolan said in a statement. “The company also generated healthy free cash flow. We remain confident in the strength of our underlying business and in our ability to deliver industry-leading products.”
In recent quarters Cablevision has completed a number of moves, including the spinoff of AMC Networks (NASDAQ:AMCX) as well as New York Knicks and Rangers parent MSG (NYSE:MSG).
Shares of Cablevision soared 6.07% to $16.55 Tuesday morning, allowing the company to build on its early 2012 rise of roughly 10%.