Cablevision Tops Earnings Estimates Despite Projected Profit Drop

Cable operator increases revenue by 3.8 percent, but profit falls $223.5 million

Last Updated: November 6, 2014 @ 7:38 AM

Cablevision (CVC) reported earnings of $0.27 a share in the third quarter of 2014, up from $0.22 during the same period last year. The company increased its revenue levels to $1.63 billion, up from $1.57 million in 2013’s Q3.

Cablevision’s net income fell significantly to $71.5 million, down from $295 million the year before.  Part of the loss was due to discontinued operations, as the company sold both Bresnan Broadband Holdings and Clearview Cinemas in 2013.

Still, the company beat Wall Street’s expectations of about $0.16 to $0.19 per share and just slightly topped expectations of $1.6 billion in revenue. Cablevision attributed its net revenue growth to cable rate increases, effective pricing strategies and higher advertising revenue; all factors that offset a reported decline in customers.

In July, the company introduced video conferening under its flagship Lightpath suite of services. Lightpath is Ethernet-based and offers data, Internet, voice and video mobility for businesses. With the new service, the company targeted both middle and big-sized businesses.

“Cablevision’s third quarter results reflect a continuation of the strong financial performance that we delivered in the first half of the year,” Cablevision CEO James L. Dolan said. “We have seen significant year-over-year improvements in revenue, AOCF, and free cash flow, and we are pleased with the results of our ongoing effort to transform the Optimum experience. Looking ahead, we will continue to improve our products and services while remaining focused on enhancing shareholder value.”

The company’s earnings call is scheduled for 10 a.m. ET Thursday, at which point this post will be updated with any pertinent information.

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