Cutting The Cord? Not So Fast: Cablevision Ends 2015 With First Customer Growth Since 2008 Crisis

Cablevision Ends 2015 With First Customer Growth Since 2008 Crisis

Cable operator’s quarterly revenue comes in below expectations

Cablevision Systems Corp. said 2015 marked its first year-over-year growth in customers since 2008, though the cable operator’s fourth-quarter revenue was slightly below expectations.

As of Dec. 31, Cablevision reported 3.1 million total customers—businesses or households that use at least one of its services—an increase of 2,000 customers from a year earlier.

Cablevision, which expects its pending $10 billion acquisition by Altice NV to close in the second quarter, also reported its lowest level of what it called “competitive voluntary churn” in more than six years in the final quarter of last year.

Like other pay-television companies, Cablevision has faced challenges as a shift toward streaming video and rising cable TV costs have prompted more consumers to either cut the cord entirely or move to “skinny” bundles of channels.

During the quarter, Cablevision lost about 10,000 video customers, but added roughly 25,000 high-speed Internet customers and 5 million voice customers.

Over all, Cablevision reported a profit of $32.1 million, or 12 cents a share, down from $56 million, or 20 cents a share, a year earlier. The latest period included $14.2 million in negative one-time items. Revenue edged down by $2.1 million to $1.63 billion.

Analysts polled by Thomson Reuters expected per-share profit of 15 cents and revenue of $1.64 billion.

LINK:

http://www.wsj.com/articles/cablevision-ends-2015-with-first-customer-growth-since-2008-crisis-1456414279