Cablevision Loses Customers, But Profit Tops View

(RTTNews) - Telecommunications and media company Cablevision Systems Corp. (CVC) reported Wednesday a profit for the fourth quarter edged up from last year, despite customer losses as revenue per customer increased. Adjusted earnings per share from continuing operations topped analysts' expectations by a penny, while quarterly revenues matched their estimates.

The Bethpage, New York-based company reported net income of $55.98 million or $0.21 per share for the fourth quarter, higher than $51.84 million or $0.20 per share in the prior-year quarter, which included $0.02 per share of income from discontinued operations.

Excluding items, adjusted income from continuing operations for the quarter was $56.15 million or $0.20 per share from $47.04 million or $0.18 per share in the year-ago quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $0.19 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter grew 3.0 percent to $1.63billion from $1.58 billion in the same quarter last year, and matched sixteen Wall Street analysts' consensus estimate of $1.63 billion.

Cable revenues for the quarter grew 3.1 percent to $1.45 billion, primarily reflecting rate initiatives, continued disciplined pricing strategies and 9.0 percent higher advertising revenue, partially offset by a decline in customers.

Compared to the year-ago quarter, the company recorded total customer losses of about 70,000 and video customer losses of about 132,000. The company also lost 20,000 High-speed data customers and 43,000 voice customers.

However, average monthly cable revenue per customer or RPC, grew 5.3 percent to $155.20 from the year-ago quarter.

Lightpath revenue increased 6.2 percent to $90.29 million in the year-ago quarter, reflecting an increase in revenue from Ethernet services, partially offset by higher employee-related costs.

Meanwhile, other revenues edged down 0.6 percent to $96.37 million from last year, reflect higher advertising revenue at News 12 Networks and lower expenditures at certain other businesses, partially offset by lower advertising revenue at Newsday.

Consolidated operating income for the quarter increased 22.1 percent to $205.8 million from the year-ago quarter.

On Tuesday, Cablevision's board of directors declared a quarterly dividend of $0.15 per share on each outstanding share of both its Class A and Class B stock, payable on April 3 to shareholders of record at the close of business on March 16, 2015.

"As we look to 2015, we will continue to expand and improve connectivity inside and outside the home. The recent launch of Freewheel, our new all-WiFi data, talk and text service, is just one example of how we will serve the evolving needs of our customers while continuing to build the company for the long term," CEO James Dolan said in a statement.

In Wednesday's regular trading session, CVC is currently trading at $19.50, up $0.30 or 1.52% on a volume of 0.35 million shares. In the past 52-week period, the stock has been trading in a range of $15.92 to $21.97.