Cablevision 4Q Net Soars on Dish Settlement Gain
Cablevision (NYSE:CVC) nearly doubled its fourth-quarter profit after posting a large gain from its settlement with Dish Network (NASDAQ:DISH), while its subscriber base narrowed and revenue dropped in the wake of Hurricane Sandy.
The cable operator said its net income soared 92% to $116.5 million, or 45 cents a share, compared to $60.6 million, or 22 cents a share, the same period a year earlier.
The latest quarter included a roughly $200 million gain largely related to the settlement. Dish agreed late last year to settle a lawsuit with AMC Networks (NASDAQ:AMCX) and pay a cash settlement of $700 million to AMC and Cablevision.
Discounting the settlement gain, the company posted a loss from continuing operations of 32 cents a share.
Revenue dropped 1.6% to $1.66 billion.
Analysts projected revenue of $1.7 billion and per-share earnings of eight cents.
Cablevision, the fifth-largest U.S. cable operator by subscribers, said it has lost about 39,000 customers since the third quarter, as billing for several thousand subscribers was temporarily suspended following the October hurricane.
The company lost 50,000 subscribers in its video unit, the largest driver of revenue for Cablevision. It also lost about 5,000 high-speed data customers and 10,000 voice subscribers.
Revenue from its cable television business fell 2.2% to $1.47 billion on the impact of Hurricane Sandy and fewer subscribers.
Earlier this week, Cablevision filed a lawsuit against MTV and Comedy Central parent company Viacom (NASDAQ:VIAB), alleging the company violated antitrust regulations by bundling its most popular channels with “lesser-watched” channels.
Shares of Cablevision were down 83 cents, or 5.37%, to $14.64 in early morning trading Thursday.