Revenue up, net profit down in Cablevision's Q4
Cablevision Systems reported increased revenue in its fourth quarter, though its net profit was down 47 percent.
The company lost 14,000 video subscribers but compensated somewhat by attracting a net of 20,000 broadband activations and 31,000 voice accounts.
Overall, Cablevision lost a net of 11,000 customers in the quarter. The company ended the quarter with about 3.25 million video subscribers and 2.97 million broadband customers.
ARPU was up, however, a key contributing factor to the company's increase in revenue. Cablevision said that figure was up 2.4 percent, or $2.39, to $154.10. The company also reported growth in its Lightpath business services operation.
Cablevision lost fewer video customers and gained more broadband customers than expected, and even the decrease in the net was just about what was expected, but its stock still ended up getting dinged today. Investors reacted less to that news than to the prospect of increased spending in the future.
CEO James Dolan, on the company's conference call with analysts, said Cablevision's capital expenditures were likely to rise, with more spending on unspecified broadband infrastructure.
"2012 will be a year of investment," Dolan said. "We have a lot to accomplish in 2012. We have much to get done this year," Dolan said, according to multiple reports.
Dolan also said the company would be eliminating its lowest-priced introductory offer because the rates were too low to make economic sense, according to Bloomberg's report.
Fourth-quarter consolidated net revenues grew 7.3 percent to $1.69 billion. For the full year 2011, consolidated net revenues increased 8.5 percent to $6.7 billion. Much of the fiscal increase was attributed to the addition of Bresnan Communications, acquired last year.