Cablevision Grows Earnings, Loses Subscribers in Fourth Quarter
The cable operator, controlled by the Dolan family, lost video and telephony customers for the third time in as many quarters.
Cablevision Systems on Wednesday reported improved fourth-quarter financials as it continued to lose pay TV and telephony subscribers.
The cable operator, controlled by the Dolan family, lost video and telephony customers for the third time in as many quarters, while its broadband business returned to adding subscribers in the fourth quarter.
Earnings rose to $56.0 million from $51.8 million in the year-ago period, slightly exceeding Wall Street expectations, and operating income rose 22.1 percent to $205.8 million. Adjusted operating cash flow, another profitability metric, decreased 3.4 percent to $440.9 million. Revenue of $1.63 billion was up 3 percent from the year-ago period.
Cablevision lost 34,000 pay TV subscribers in the fourth quarter after a third-quarter loss of 56,000. The company ended 2014 with 2.68 million video subscribers and 3.12 million overall subscribers.
Cablevision added 4,000 broadband customers in the final quarter of 2014, but lost 11,000 telephony subscribers.
"Cablevision delivered strong financial results in 2014, with significant year-over-year increases in revenue, AOCF and free cash flow," said Dolan. "We also took steps to enhance our position as our customers’ preferred connectivity company, including the ongoing
expansion of the Optimum WiFi network."
He added: "As we look to 2015, we will continue to expand and improve connectivity inside and outside the home. The recent launch of Freewheel, our new all-WiFi data, talk and text service, is just one example of how we will serve the evolving needs of our customers
while continuing to build the company for the long term."