Superstorm Sandy rains on Cablevision’s earnings
Cablevision’s fourth quarter subscriber numbers and revenue took a hit in the aftermath of Superstorm Sandy.
The nation’s fifth-largest cable operator lost about 50,000 video subscribers, 5,000 data customers and 10,000 voice subscribers in the fourth quarter. Cablevision also lost about 39,000 customer relationships from the third quarter to the fourth quarter.
In the tri-state New York metro area, Cablevision was particularly hard hit by Superstorm Sandy last year. Cablevision had to deal with network damage, flooding and power outages in the aftermath of the storm, and then followed up with rebates to customers who were without service.
This morning Cablevision said it paid out $33.2 million in credits and that its consolidated adjusted operating cash flow decreased about $110 million due to costs incurred by Superstorm Sandy.
“The enormous challenges of Superstorm Sandy had a strong negative impact on our fourth quarter results,” Cablevision CEO and President Jim Dolan said.
Thanks to a $200 million litigation settlement from Dish Network, Cablevision posted a profit of $116 million, or 45 cents a share, compared to net income of $60.6 million, or 22 cents a share, in the same quarter a year ago. Minus the settlement, Cablevision had a loss from continuing operations of 32 cents a share.
Cablevision’s revenue was $1.66 billion, which was down 1.6 percent.
This week Cablevision filed a lawsuit against Viacom for allegedly bundling its most popular channels, such as MTV and Comedy Central, with "lesser-watched" channels.
Earlier this month, Cablevision struck a deal to sell the former Bresnan systems, which Cablevision called “Optimum West,” to Charter Communications for $1.62 billon.