Cablevision Profits But Loses More Vid Subs
The MSO posted net income of US$77.8 million or 31 cents per share on revenues of $1.69 billion. That's up from a profit of $60.9 million, or 20 cents, it reported a year earlier. Analyists polled by Thomson Reuters expected a profit of 42 cents per share on revenues of $1.83 billion.
Cablevision, which faces off with Verizon Communications Inc. (NYSE: VZ) FiOS in a good chunk of its footprint, lost 23,000 video subs (Wall Street was expecting a loss of just 2,000 video subs), after gaining almost 76,000 in the year-ago period. The already well entrenched MSO added just 5,000 high-speed data customers and 27,000 voice lines during the quarter.
In concert with earnings, Cablevision announced its Optimum App, which provides access to its lineup of linear and on-demand content, to the iPhone and iPod Touch. Previously, the app, which limits access to live TV channels to within a subscriber's home, was offered only on the iPad. (See Cablevision Launches iPad App With 280+ Channels .)
Cablevision shares were down $2.05 (10.5%) to $17.47 each in Tuesday morning trading. But so is everything else.
— Jeff Baumgartner, Site Editor, Light Reading Cable