Cablevision Revs Up 7%, Gains In Telco Unit
Cablevision Systems Corp. grabbed higher revenues in the fourth quarter of 2011, mainly due to its voice and Internet business -- but witnessed a tumble in net income.
Revenues rose 7.3% to $1.7 billion. with net income losing about half its results from the fourth quarter of 2010 -- now at $60.6 million. down from $113.9 million. For the year, net income was down 19% to $291.9 million.
Analysts says these results were a bit below expectations, but Cablevision lost fewer video customers than anticipated.
The company continued to gain on its faster-moving businesses: Internet and phone. Its telecommunications services unit -- which includes Internet, phone and traditional cable video service -- grew 8.3% to $1.6 billion, with operating income climbing 21.0% to $427.2 million. Much of this was due to the acquisition of Bresnan cable systems.
High-speed data and voice customers made gains of of 20,300 (up 20%) and 30,500 (31% higher), respectively, in the fourth quarter of 2011.
"For the fourth quarter, despite modest video subscriber losses, our cable operations continued to report improved subscriber metrics in both high-speed data and voice customers," said James Dolan, president/CEO of Cablevision Systems.
Cablevision lost 14% of its traditional video customers base, now at 3.25 million. Revenues for those only in the video business rose 7% to $874 million. The average monthly revenue for its basic video customer gained 1.6% to $154.10.
Local advertising revenues inched up to $41 million from $36 million versus the fourth quarter of 2010. Results of weak advertising revenues at its newspaper Newsday pulled down overall numbers.