Cablevision loses video subscribers for 10th straight quarter

Reuters News
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Posted: Feb 25, 2015 10:58 AM

(Reuters) - Cablevision Systems Corp reported a drop in the number of video subscribers for the tenth quarter in a row, sending the cable TV provider's shares down more than 5 percent in early trading.

The company also posted a 3.4 percent fall in adjusted operating cash flow, a closely watched metric for the cable TV industry.

Cable and satellite distributors have been under pressure to stop consumers from dumping their cable subscriptions, or "cutting the cord", as subscribers increasingly shift to internet-based services.

Cablevision, which is controlled by New York's Dolan family, said the number of video customers fell 4.7 percent to 2.68 million in the fourth quarter ended Dec. 31.

Adjusted operating cash flow fell to $440.9 million.

The decline in subscribers overshadowed a better-than-expected profit, which was helped by a 9 percent increase in cable advertising revenue and a 5.3 percent increase in the average monthly cable revenue per customer.

Net revenue rose to $1.63 billion from $1.58 billion.

Net income attributable to Cablevision stockholders rose to $56 million, or 20 cents per share, from $51.8 million, or 19 cents per share, a year earlier.

Analysts were expecting a profit of 19 cents per share on revenue of $1.63 billion, according to Thomson Reuters I/B/E/S.

The company's shares were down 3.2 percent at $19.17 in early trading.

(Reporting by Sai Sachin R and Arathy S Nair in Bengaluru; Editing by Saumyadeb Chakrabarty)