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Cablevision reports upbeat 3Q earnings

Wed, 11/05/2008 - 7:35pm
Mike Robuck

Cablevision joined the ranks of Time Warner Cable and Comcast with today’s news of a healthy third-quarter earnings report.

Cablevision CEO Jim Dolan credited the success of the company’s core cable operations, Madison Square Garden and Rainbow businesses as the reasons for the solid third-quarter results.

Cablevision’s third quarter consolidated net revenue grew 15.4 percent to $1.74 billion compared to the $1.51 billion from the same time frame a year ago. The company’s operating income increased 39 percent to $281 million.

The company brought in $27.1 million, or 9 cents a share, in the third-quarter compared to a loss of $79.3 million, or 27 cents a share, a year go. Cablevision said the loss last was impacted by write offs and investment and divestiture losses.

Revenue for Cablevision’s telecommunications services, which include Cablevision’s “Optimum” branded video, broadband, and voice residential and commercial services offered over its cable infrastructure  and its “Optimum Lightpath” branded commercial data and voice services, increased 10 percent to $1.29 billion.

Cablevision’s digital voice revenue increased 27 percent to 175 million thanks in part to the addition of 334,700 new customers who represented a 22 percent increase.

Bethpage, N.Y.-based Cablevision’s basic video customers were down 19,100, or .6 percent, from June 2008 and down 9,900, or.3 percent from September 2007, but the company added 228,800 digital cable subscribers, which was a 9 percent increase.

Cablevision’s video revenue increased 7.5 percent to $741 million.

Cablevision, the nation’s fifth largest cable operator with a footprint in the New York city metropolitan area, added 207,700 new broadband subscribers, which was a 9.4 percent bump over a year ago. High-speed Internet revenue was up 9 percent to $276 million.

For third quarter 2008, Lightpath’s net revenues rose 13 percent to $62.7 million. Cablevision said the increase in net revenue was primarily due to the continued growth in Ethernet services, but it was partially offset by the effect of the transition from traditional data service.

Madison Square Garden’s revenue increased 10 percent in the third quarter to $158.2 million.

Rainbow Media Holdings, which includes AMC, IFC and Sundance cable channels, had a 21 percent increase on revenue of $251.4 million.

Yesterday Time Warner Cable reported a 21 percent increase in its third-quarter profit (see story) while last week Comcast said its third-quarter profit increased 38 percent (see story)

More Broadband Direct:

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• Cablevision reports upbeat 3Q earnings

• Economy dings DirecTV's Q3 subscriber tally

• Charter Communications 3Q loss narrows

• FCC to probe pricing policies of cable, Verizon

• Comcast's VOD platform in more than 30 million homes

• Yahoo invites another Microsoft offer

• Sonus posts loss; will sell Zynetix

• Broadband Briefs for 11/06/08

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