It was no surprise that Cablevision added data and phone customers in the second quarter, but the nation’s fifth-largest cable operator also managed to retain its basic video subscribers, as well.
In addition to the satellite video providers, Cablevision faces stiff competition from Verizon’s FiOS in its New York metropolitan footprint. Verizon has backed off on its promotions and build-outs and recently said it would increase its subscriptions in the second half of this year.
Cablevision’s video subscribers stayed at 3.3 million from the first quarter to the second quarter, while it added 25,000 data and 23,000 voice subscribers. Analysts had projected that Cablevision would lose 10,000 video subscribers in the quarter.
Overall, Cablevision added 7,000 net customers from the first quarter to the second quarter. Average revenue per user increased 1.7 percent to $155.12.
Cablevision earned $63.5 million, or 24 cents per share, in the second quarter compared to 87.8 million, or 32 cents per share, a year ago. Analysts had estimated an average of 19 cents per share.
Last summer, Cablevision spun off AMC Networks. Minus the earnings from AMC a year ago, Cablevision’s earnings were down a penny per share. Excluding AMC, Cablevision’s revenue was up 0.5 percent to $1.7 billion.
Cablevision’s adjusted operating cash flow was down 7.2 percent to $532.4 million, while operating income dropped 17 percent to $26.3 million.
“We are continuing to invest in our operations to ensure that we are offering the best products and service to our customers,” Cablevision President and CEO James Dolan said. “The value proposition that Cablevision offers is growing as we further expand our Wi-Fi network, enhance the Optimum Online experience, and provide a growing list of both on-the-go and HDTV video offerings. These actions are generating a positive response as evidenced by the 24,000 net new customers we have added during the first half of 2012 and our very strong results in the recent FCC broadband measurement tests. Our focus on transforming the way we operate has never been stronger."