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Cablevision increases revenue, loses subs in Q2

Tue, 08/09/2011 - 8:35am
Brian Santo

Cablevision Systems lost 23,000 video subscribers in total in its second quarter, but it still grew revenue by more than 9 percent.

Ultimately, the company lost 17,000 subscriptions, stanching the leakage on the video side with increases in Internet and VoIP subscriptions from both its Optimum and Lightpath operations. The company tallied 5,000 new Internet subscribers, its lowest total in years.

With the spin-off of its programming arm, including AMC Networks, Cablevision's results are now led by the Telecommunications Services sector (cable television and Lightpath commercial services).

Net revenue in the segment rose 9.8 percent to $1.57 billion compared with the prior-year period. Those numbers were boosted by results from the recently acquired Bresnan Communications and by increased demand for Ethernet-based services from the Lightpath side of the house.

Customer Data (includes Bresnan acquisition)

(in thousands)

Total
March 31, 2011

Net gain/
(Loss)

Total
June 30, 2011

Total customers

3,658

(17)

3,641

Video customers

3,306

(23)

3,283

High-speed data customers

2,927

5

2,932

Voice lines

2,919

27

2,946

Serviceable passings

5,550

11

5,561

Source: Cablevision Systems

Second-quarter consolidated net revenues grew 9.1 percent to $1.68 billion compared with the prior-year period. Net income was $87.8 million, compared with $60.8 million in the second quarter of fiscal 2010.

Cablevision President and CEO James Dolan's statement said: "With the successful completion of the AMC Networks spin-off, Cablevision's consolidated results are now primarily driven by our telecommunications operations, which experienced solid revenue growth in the second quarter due largely to our Bresnan properties. The company also continued to generate healthy free cash flow. Moving forward, as we roll out new innovations like our iPad app and DVR Plus, Cablevision is more focused than ever on the strength of our telecommunications business and on creating additional value for our customers and shareholders."

Separately, Cablevision has extended the functionality of the iPad app, which Dolan referred to, to iPhones and iPods.

Cablevision's Optimum App

Since Cablevision's introduction of its Optimum iPad app four months ago, any service available to Optimum subscribers on their TVs had been available to them on their iPads. Thus far, the company said it has logged 200,000 downloads of the app.

Cablevision said customers can now get more than 300 channels of live TV and thousands of titles of VOD on all three devices, in addition to DVR management, interactive guide information and search.

A new function for all three devices is that customers can use the app as a virtual remote control for conventional TVs in the home.

Customers do not need to have Internet access to use the Optimum App. The Optimum App turns these display devices into additional televisions in the home, enabling Cablevision customers to view the same live programming and VOD content already being delivered to other TVs in the home as part of the service they have paid for. Cablevision has the right to distribute programming over its cable system to in-home iPhones, iPods, iPads and other devices functioning as televisions under its existing distribution agreements with programming providers, the company explained.

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