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Cablevision Profits But Loses More Vid Subs

Cablevision Systems Corp. (NYSE: CVC) reported higher profits but missed analyst estimates as the New York-based MSO lost 23,000 video subs in the second quarter.

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



shygye75 12/5/2012 | 4:56:39 PM
re: Cablevision Profits But Loses More Vid Subs

Jeff -- so Cablevision had a net loss of 23,000 video subs on a base of 3.3 million, right? Isn't that more of a bad-news story for Verizon (the newish competitor) rather than Cablevision (the incumbent)?

Jeff Baumgartner 12/5/2012 | 4:56:36 PM
re: Cablevision Profits But Loses More Vid Subs

I guess you could argue that Cablevision's still holding its own fairly well even if it did lose some video subs in the period while also seeing sub increases in its other categories (HSD, voice) slow versus a year ago.  But Cablevision, which did a great job driving digital video penetration, is faced with the challenge of  retaining the subs it fought so hard to get. JB

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