Cablevision Profits, Video Subs Shrink in Q3
Cablevision Systems Corp. (NYSE: CVC)'s profit dipped 65 percent in the third quarter even as revenues rose 8 percent thanks in part to its recent acquisition of Bresnan Communications LLC . (See Cablevision Goes Country With Bresnan Buy.)
Cablevision said third-quarter earnings were US$39.6 million (14 cents per share), versus $112.4 million (37 cents per share) in the year-ago quarter, on revenues of $1.66 billion. Cablevision revenues were in line with Wall Street expectations, but missed on earnings, which were expected to be 32 cents per share.
Cablevision noted that results were impacted by $16 million in costs tied to Hurricane Irene and the Bresnan deal.
Cablevision lost 19,000 video customers, narrowed from the 24,500 it lost a year ago and the 23,000 it lost in the second quarter. It did better in other areas, adding 17,000 high-speed Internet subs, and 38,000 phone subs -- numbers that arrive the day after Time Warner Cable Inc. (NYSE: TWC) reported losing voice subs for the first time in the third quarter. (See TW Cable Sheds Video and Voice Subs .)
Cablevision ended the quarter with 3.28 million video subs, 2.93 million Internet subs and 2.94 million voice lines. Optimum Lightpath , the MSO's enterprise services arm, posted revenues of $77.5 million, up 6.2 percent due to a 17.9 percent rise in Ethernet sales.
— Jeff Baumgartner, Site Editor, Light Reading Cable