Cablevision Systems Corp. added about 5,000 subscribers in the
second quarter, as its strongest growth in high-speed data
customers in more than two years offset continued losses in its
video businesses.
The company's profit topped expectations, while revenue was
in-line.
The results come amid growing concern about the future health of
the TV ecosystem, as younger consumers increasingly turn away from
pay-TV to the Internet for their viewing.
Shares in many big media companies have been battered in trading
this week after a string of weak earnings reports. Cablevision
shares are down 6% this week through Thursday's close. Cablevision
has been aggressively targeting viewers who are looking to "cut the
cord." The company has unveiled a variety of efforts targeted at
these customers in recent months: from $15-a-month streaming-video
service unveiled in July to becoming the first pay-TV provider to
saying it will offer HBO's stand-alone streaming.
Cablevision said its total customers—businesses or households
that subscribe to at least one service—grew to 3.12 million as of
June 30 from 3.11 million as of March 31. The company lost 16,000
video subscribers and 7,000 voice subscribers. But it added 14,000
high-speed Internet customers, bringing its total to 2.78 million
as of June 30.
Cablevision said the growth represented its largest quarterly
gains in customer relationships and high-speed data in more than
two years.
Average monthly cable revenue per customer rose 3.8% from a year
ago to $158.52.
In all, for the quarter ended June 30, Cablevision posted a
profit of $75.6 million, or 27 cents a share, down from $94.2
million, or 35 cents a share, a year earlier.
Revenue fell 1.6% to $1.65 billion.
Analysts had projected 25 cents a share in profit and $1.65
billion in revenue, according to Thomson Reuters.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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