Cablevision Quarterly Earnings Beat Estimates, Pay TV Sub Losses Narrow
The latest profit topped Wall Street expectations, as the company posts its best quarter, in terms of subscriber trends, in more than two years.
Cablevision Systems on Friday reported better-than-expected second-quarter financials and a narrowed loss of 16,000 video subscribers.
The cable operator ended June with a total of 2.64 million video subscribers and 3.12 million total customers. In the year-ago period, it had lost 28,000 pay TV customers.
Cablevision's second-quarter earnings of $75.6 million, or 28 cents per share, were down from $94.2 million, or 36 cents, but beat Wall Street estimates of 25 cents. Looking at continuing operations, earnings per share fell from 34 cents to 27 cents. Consolidated adjusted operating cash flow fell 2.7 percent to $474.3 million, and operating income dropped 4.5 percent to $244.5 million from $255.9 million. Revenue rose 1.6 percent to $1.65 billion.
The company added 14,000 broadband users in the latest quarter, but lost 7,000 telephony customers. In the year-ago quarter, Cablevision had lost 9,000 broadband and 7,000 telephony users. Overall, in the latest quarter, the company added 5,000 subscribers.
Said Cablevision CEO James Dolan: "Cablevision continued to perform well in the second quarter, achieving growth in net revenue and revenue per customer. Over the past three years, we have transformed our company through strategic investments that have made our operations more efficient, increased the reliability and performance of our network and enhanced our products and the customer experience."
He added: "This has contributed to our largest quarterly gains in both customer relationships and high-speed data customers in more than two years. We will continue to focus on providing superior service and innovative products that will resonate with consumers."