Cablevision Gains Video Customers, Helped By Mobile, Net Rises
More Internet and phone consumers at Cablevision Systems helped the company maintain its revenue levels in its first quarter of 2012 versus the same period a year ago. But Wall Street still wasn’t happy.
The first quarter gained just 0.2% to $1.659 billion in revenue, a total under Wall Street analysts’ estimates. Tougher news also came with operating income, which slipped 16% to $250.1 million. Net income was cut in half -- $57.1 million from $104.0 million.
All that took the wind out of Cablevision’s stock earning -- losing more than 8% on the day to close at $13.54.
Cablevision gained 41,800 broadband and 42,400 voice customers in the period.
The company said there was a bit of a silver lining. It reversed a long trend, which has been industry-wide, of losing basic video customers. Although a small number, Cablevision made 7,000 additions -- the largest quarterly increase in four years. As other cable operators have reported, Cablevision says its average monthly revenue per basic video customer continues to improve -- almost 2% to $152.53.
Cablevision’s other businesses -- Newsday, News 12 Networks, MSG Varsity, Clearview Cinemas, and Cablevision Media Sales Corporation -- slipped 0.6% to $101.0 million, with operating losses narrowing to now $72.5 million compared with the prior-year period.
The group witnessed declines in advertising revenues at Newsday.