* Q3 shr loss 1 cent vs year-ago profit 14 cents
* Q3 revenue $1.69 bln in line with Street view
* Shares fall 5.2 percent
* Loses 10,000 video customers vs Street view loss 9,000
Nov 6 Cablevision Systems Corp reported
a third-quarter loss on Tuesday due to higher costs and lost
video customers, even as it gained Internet customers faster
than analysts expected.
Cablevision, like bigger operators Comcast and
Time Warner Cable, has been losing customers to rivals
such as satellite television provider DirecTV and
telephone operator Verizon Communications.
Cablevision lost 10,000 video customers in the quarter,
compared with analysts' expectations for a loss of 9,000, but it
added 28,000 Internet customers, ahead of the Wall Street target
of 23,000, according to StreetAccount.
Cablevision shares fell 5.2 percent to $15.67 in morning
trade on the New York Stock Exchange.
Hudson Square research analyst Todd Rethemeier, who looked
for the company to add video customers in the third quarter,
said Cablevision was being hurt by the weak economy as well as
"Until the economy recovers and the number of housing units
starts to grow again it will be tough to see significant
subscriber growth," Rethemeier said.
Also on Tuesday, DirecTV said it added 67,000 video
subscribers, and another satellite TV provider Dish Network Corp
reported 19,000 subscriber losses in the quarter.
Previously, Verizon had reported 136,000 FiOS Internet
customer additions and 119,000 FiOS video customers.
At the end of the quarter, the U.S. Northeast, Cablevision's
main operating region was hit by superstorm Sandy, which caused
widespread flooding and power outages that disrupted cable and
Cablevision said it was working to restore service to
customers affected by Sandy, which hit the northeastern United
States coastline on Oct. 29. Its biggest challenge is power
outages suffered by Cablevision customers.
Rethemeier said it was too soon to say how much the storm
would cost Cablevision, which promised to offer a credit to
customers whose service was out after the storm.
The cable service provider posted a loss of $3.8 million, or
1 cent per share, compared with a profit of $39.3 million, or 14
cents per share, in the year-earlier quarter. Included in the
latest quarter was $61.1 million of debt refinancing costs.
Excluding unusual items, earnings per share were 23 cents,
compared with Wall Street expectations for 16 cents, according
to Thomson Reuters I/B/E/S.
Revenue rose to $1.69 billion from $1.67 billion, meeting
Wall Street expectations, according to Thomson Reuters I/B/E/S.