• by Wayne Friedman , August 1, 2019

Altice USA, the fourth-largest cable TV system, posted solid overall results, according to analysts -- growing revenues by nearly 4% to $2.45 billion, posting modest video subscribers declines, and registering strong advertising gains.

Like other communications/cable TV companies, Altice witnessed strong results in its broadband business, with revenues climbing 13% to $806.3 million. Voice/phone revenue was down 8% to $150.2 million.

Its biggest revenue generator, video revenue, was virtually the same, down 1% to $1.02 billion versus $1.03 billion. Video subscribers were down 20,800 from the first quarter to 3.276 million. In the second-quarter 2018, video subscribers were at 3.35 million.

Jeffrey Wlodarczak, media analyst for Pivotal Research Group, says: “The bottom line is that Altice management continues to deliver, despite a very lean relative cost structure.”

Second-quarter Altice’s video subscribers declines were better than expected, according to analysts. 

In the company’s call with analysts, when asked about other cable system owners losing video subscribers, Dexter Goei, CEO of Altus USA, said: “Video [is] a profitable product for us. Two, it does have good stickiness relative to other products, obviously, mainly broadband. So we're going to continue to invest the resources in the video product.”

Goei added: “We've been consistent that we may have somewhat of a unique footprint in the New York tri-state area, which is a very, very high video bundle consumption market.”

That wasn’t Altice only difference to other pay TV providers. It registered a gain in local cable advertising revenues -- 3% higher in its second quarter to $113 million. Taking out political advertising - where it had higher results versus the same period a year ago, there was 11% growth in revenue.

Altice’s a4, its advanced advertising unit, posted growth from local and national multiscreen advertising deals. Altice closed its Chedder digital news service -- now part of its advertising unit, within Altice News --  in June 2019.

Charles Stewart, CEO of Altice USA, said: “Advertising per se is doing better on a relative basis than our peers, given the investments we've done there.”

Altice’s net income was $86.4 million versus a net loss of $98 million in the previous second quarter 2018.

Altice added 13,100 broadband customers, now totaling 4.17 million. Voice/phone was down 24,300 subscribers to 2.49 million.