Cablevision Third-Quarter Video Subs, Profit Decline

NY - Cablevision Systems on Friday reported a lesser third-quarter profit and stated it lost 19,000 video customers within the latest period. Around-ago period, the cable operator had lost 24,500 video subs, as well as in the 2nd quarter it had lost 23,000, meaning customer momentum enhanced within the latest period. The customer declines were also less pronounced than Wall Street experts had predicted. This news came a next day of Time Warner Cable stated it ongoing to get rid of video subs within the latest quarter, but less than last year - the very first time within 2 yrs it had noted this kind of improvement. Experts famous better-than-expected customer trends, but were disappointed through the less strong-than-forecasted financials. Cablevision, controlled through the Dolan family, stated Friday that it is third-quarter earnings came to $39.six million, in comparison with $112.4 million around-ago period, lower 65 %, despite the fact that revenue rose 8 percent to $1.67 billion, driven through the purchase of Bresnan Communications. One of the drags at the base line, which arrived below Wall Street estimations, were about $16 million in costs associated with Hurricane Irene, $3 million indebted extinguishment costs and write-offs of deferred financing costs, which the organization didn't have around-ago period, greater interest expense and $95 million in investment deficits. Cablevision stated it added 17,000 broadband customers and 38,000 telephony clients. After its slight decline in video subs, the firm had 3.26 million video clients in the finish of September. "Our cable procedures reported enhanced customer metrics that incorporated increases both in high-speed data clients and voice lines, while the organization ongoing to create healthy free income,Inch stated Boss James Dolan. "Once we are operating inside a challenging atmosphere, we're ongoing our efforts to take advantage of the effectiveness of our network and items as well as on building our business for that lengthy-term." Still, Cablevision shares were buying and selling lower a lot more than 6.6 % by 10am ET. "We feel that the greater degree of marketing spend throughout the Verizon strike in August performed an essential part within the [operating income] weakness and positively influenced customer internet adds, which exceeded our estimations and consensus estimations," Evercore Partners analyst Bryan Kraft stated. Echoed Wells Fargo analyst Marci Ryvicker: "This can be a very mixed quarter with financials missing and share repurchases less than anticipation while [customers] beat. We feel both less strong financials and superior customer metrics are due to greater acquisition and retention investing." On the business call, Cablevision management stated it is constantly on the push for reforms in retransmission consent fee discussions with content companies. Among recent discuss potential moves by pay TV operators introducing more a la carte programming offers, the organization stated it doesn't expect the present business design to alter much within the near-term. Email: Georg.Szalai@thr.com Twitter: @georgszalai Related Subjects Cablevision Earnings