Cablevision Q2 Profit More Than Doubles, But Loses 20,000 Video Customers

(RTTNews) - Telecommunciations and media company Cablevision Systems Corp. (CVC) on Friday reported a profit for the second quarter that more than doubled from last year, as results included income from discontinued operations. However, the company's income from continuing operations declined and it lost 20,000 video customers in the quarter.

Telecommunications services net revenues for the second quarter increased 0.9 percent from the year-ago period to $1.48 billion, while operating income declined 19 percent to $270.7 million.

Cable Television net revenues rose 0.9 percent from last year to $1.40 billion, primarily due to continued growth of data and voice customers as well as higher data rates. These were partially offset by lower video revenues and a decrease in advertising revenues.

During the latest quarter, the segment recorded total customer losses of about 11,000 and video customer losses of about 20,000 compared to the year-ago period. However, the company generated high-speed data customer additions of 1,000 and voice customer additions of 3,000 compared to the same period last year.

Average monthly revenue per basic video customer or RPS was $162.42 in the quarter, an increase of $5.49, or 3.5 percent, compared to the prior-year period.

Meanwhile, Lightpath net revenues grew 2 percent from the same period last year to $82.47 million and reflects an increase in revenue from Ethernet services.

The 'Other' segment primarily consists of Newsday, News 12 Networks, MSG Varsity, Cablevision Media Sales Corp. and certain other businesses and unallocated corporate costs. Net revenues at the segment declined 1 percent from the year-ago period to $94.52 million, primarily due to lower advertising revenues at Newsday. This was partially offset by lower operating costs.

Bethpage, New York-based Cablevision's second-quarter net income attributable to stockholders increased to $135.36 million or $0.51 per share from $63.53 million or $0.24 per share in the same quarter last year.

The latest quarter's results include income from discontinued operations of $107.50 million or $0.41 per share, compared to loss from discontinued operations of $13.45 million or $0.05 per share in the year-ago period.

Income from discontinued operations comprise the results of Bresnan Broadband Holdings, LLC, or Bresnan Cable, that was recently sold to a unit of Charter Communications Inc. (CHTR) for $1.63 billion, and Clearview Cinemas that was sold to Bow Tie Cinemas.

However, income from continuing operations declined to $28.22 million or $0.11 per share from $77.24 million or $0.29 per share in the year-ago period. On average, nineteen analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter edged up 0.8 percent to $1.57 billion from $1.56 billion in the prior-year quarter. Analysts had a consensus revenue estimate of $1.58 billion.

On July 30, 2013, 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.

The quarterly dividend is payable on September 5 to shareholders of record at the close of business on August 15.

In Friday's regular trading session, CVC is trading at $18.73, up $0.09 or 0.48 percent on a volume of 236,051 shares.