Cablevision’s Q3 overwhelmed by expenses
Cablevision Systems reported a third-quarter loss of $3.8 million on slightly higher revenue, compared with the similar period a year ago. Third-quarter net revenue grew 1.2 percent to $1.685 billion.
The loss was attributed to higher expenses associated with restructuring and compensation, as well as larger expenditures on paying down debt.
Between a loss of 10,000 basic TV subscribers and gains in broadband and voice customers, the company netted an increase of about 5,000 of what Cablevision describes as customer relationships.
The quarterly increases in broadband and voice accounts were approximately 28,000 and 22,000, respectively. Average monthly revenue per basic video customer (RPS – essentially what most other companies call ARPU) was up $3.12, or 2.1 percent, to $154.83, compared with the prior-year period.
Cable advertising revenue saw growth of 12.3 percent compared with the prior-year period.
In his statement accompanying the results, Cablevision President and CEO James Dolan addressed the impact of Hurricane Sandy, which steered almost directly at Cablevision’s customers in the Northeast.
"The effects of last week’s storm have had a devastating impact on residents in much of our service area. As we report our third-quarter results today, Cablevision crews continue to work around the clock to restore service to our customers as quickly as possible,” Dolan said.
“Our number one challenge continues to be Cablevision households without electrical power, and we are moving quickly to restore our service once power returns. In addition, as of today, the vast majority of our Optimum WiFi hotspots are operational across the tri-state region and providing service to our customers,” he continued.
There was no word on the fate of Bresnan Communications, which the company purchased two years ago and is said to be considering selling.