Cablevision Systems Q2 Profit Down 20%, But Beats View

(RTTNews) - Telecommunications and media company Cablevision Systems Corp. (CVC) on Friday reported a 20 percent decline in profit for the second quarter from last year, as higher revenues were more than offset by an increase in expenses.

However, earnings per share from continuing operations for the quarter beat analysts' expectations, while revenues matched their estimates. During the quarter, the company recorded its largest quarterly gain in high-speed data customers in more than two years.

Cablevision CEO James Dolan said, "Over the past three years, we have transformed our company through strategic investments that have made our operations more efficient, increased the reliability and performance of our network, and enhanced our products and the customer experience. This has contributed to our largest quarterly gains in both customer relationships and high-speed data customers in more than two years."

The Bethpage, New York-based company reported second-quarter net income attributable to stockholders of $75.60 million or $0.27 per share, down from $94.21 million or $0.35 per share in the prior-year quarter.

The prior-year quarter's results include income from discontinued operations of $3.51 million or $0.01 per share.

Income from continuing operations for the quarter declined to $75.60 million or $0.27 per share from $90.70 million or $0.34 per share in the year-ago period.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenues for the quarter grew 2 percent to $1.65 billion from $1.63 billion in the same quarter last year, and matched analysts' consensus estimate of $1.65 billion.

Cable revenues for the quarter grew 2 percent to $1.48 billion, primarily reflecting rate initiatives and continued disciplined pricing strategies. These were partially offset by a decline in customers and lower advertising revenue.

Compared to the year-ago quarter, the company recorded total customer losses of about 48,000 and video customer losses of about 134,000. The company also lost 65,000 voice customers, but gained 2,000 high-speed data customers.

The company added a total of 5,000 customers and 14,000 high-speed data customers compared to the preceding first quarter.

Average monthly cable revenue per customer or RPC, grew 4 percent from the year-ago quarter to $158.52.

Lightpath revenue increased 3 percent from the year-ago quarter to $91.04 million, primarily reflecting an increase in revenue from Ethernet services.

Meanwhile, other revenues declined 4 percent to $91.31 million, reflecting lower advertising revenue at Newsday, partly offset by increased advertising revenue at News 12 Networks.

On August 6, 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 dividend is payable on September 10, 2015 to shareholders of record at the close of business on August 21, 2015.

CVC closed Thursday's trading at $26.53, down $1.07 or 3.88 percent on a volume of 6.62 million shares.