After suffering across-the-board customer losses in the third quarter, Cablevision posts broadband subscriber gains and lower-than-expected video subscriber losses for the fourth.

Alan Breznick, Cable/Video Practice Leader, Light Reading

February 26, 2014

2 Min Read
Cablevision Bounces Back

Rebounding from a lousy third quarter, Cablevision finished 2013 with renewed broadband subscriber growth and lower video customer losses, both of which beat Wall Street projections. (See Cablevision Hits the Wall.)

Surprising analysts who had expected another down quarter, Cablevision Systems Corp. (NYSE: CVC) reported Wednesday that it added 6,000 high-speed data subscribers in the quarter after shedding 13,000 in the third quarter. As a result, it closed out 2013 with nearly 2.8 million broadband customers -- an increase of 17,000 for the year.

Likewise, the fifth-largest US MSO performed better than expected on the video front. It lost 18,000 basic cable subscribers in the fourth quarter after shedding 37,000 in the third. Consequently, it ended the year with about 2.81 million video customers -- down about 80,000 for the year.

Voice customers held steady over the fourth quarter at nearly 2.3 million. For the year, it picked up 8,000 phone customers.

Despite the better-than-expected fourth-quarter numbers, Cablevision posted overall customer declines for both the quarter and the year, due to the continued erosion of its video base. Its total customer count dropped 7,000 for the quarter and 42,000 for the year to below 3.2 million at the end of 2013.

However, a year after Hurricane Sandy wreaked havoc with its operations, Cablevision executives still expressed satisfaction with the company's performance. Thanks to price increases and a scaling back of promotional discounts, fourth-quarter adjusted net revenue climbed 2.3% from a year earlier to $1.6 billion. Adjusted cashflow grew 7.5% to $457 million.

Executives also credited the financial gains to efforts to cut subscriber churn through improved customer service, more effective truck rolls, and operating efficiencies. "We're pleased with the impact on subscriber movement inside the base," CEO James Dolan told analysts on the company's earnings call Wednesday morning. "We have happier customers, and customers that want to stay with us."

Cablevision highlighted continuing progress on the WiFi front. The MSO has already deployed more than 100,000 public WiFi hotspots throughout the New York metro area. Now it is installing more powerful smart routers in broadband customers' homes and focusing on better connectivity within those homes. (See Cable Wi-Fi on a Hot Streak.)

With the deployment of routers that create their own "community hotspots" inside the home, Dolan said, Cablevision in "on track" to hit 1 million WiFi access points by yearend. Though the company is not yet ready to try monetizing its investment in WiFi, that time is coming. (See Top 10 Carrier WiFi Movers & Shakers and Cablevision WiFi Rides NJ Rails.)

"We think connectivity is the most important product to customers," he said. "We think there will be growth opportunities inside of that."

— Alan Breznick, Cable/Video Practice Leader, Light Reading

About the Author(s)

Alan Breznick

Cable/Video Practice Leader, Light Reading

Alan Breznick is a business editor and research analyst who has tracked the cable, broadband and video markets like an over-bred bloodhound for more than 20 years.

As a senior analyst at Light Reading's research arm, Heavy Reading, for six years, Alan authored numerous reports, columns, white papers and case studies, moderated dozens of webinars, and organized and hosted more than 15 -- count 'em --regional conferences on cable, broadband and IPTV technology topics. And all this while maintaining a summer job as an ostrich wrangler.

Before that, he was the founding editor of Light Reading Cable, transforming a monthly newsletter into a daily website. Prior to joining Light Reading, Alan was a broadband analyst for Kinetic Strategies and a contributing analyst for One Touch Intelligence.

He is based in the Toronto area, though is New York born and bred. Just ask, and he will take you on a power-walking tour of Manhattan, pointing out the tourist hotspots and the places that make up his personal timeline: The bench where he smoked his first pipe; the alley where he won his first fist fight. That kind of thing.

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