(Adds EPS from continued operations, updates share movement)
By Aurindom Mukherjee
Aug 5 Cablevision Systems Corp's
subscriber losses doubled in the second quarter from the
previous quarter as it cut down on promotions, sending its
shares down as much as 7.8 percent.
The cable company has been focusing on boosting its profit
by raising prices and cutting expenses - moves that have come at
a cost as subscribers switch to providers offering better deals.
Most cable TV companies have lost video subscribers to
satellite and telecom rivals, as well as Web-based entrants such
as Netflix Inc, in the past few years.
Cablevision has the largest exposure to Verizon
Communications Inc's pay TV service, which has been
taking customers away from cable companies with aggressive
pricing and promotions.
Cablevision said on Tuesday it lost about 28,000 video
subscribers in the second quarter ended June 30. But sales rose
3.7 percent, beating the average analyst estimate.
"If you are not spending much on retention then your margin
will be better - financial numbers at the expense of weaker
subscribers," ISI Group analyst Vijay Jayant told Reuters.
Adjusted operating cash flow, Cablevision's most closely
watched metric, rose 11 percent, while capital expenditure fell
The cable company, which is controlled by New York's Dolan
Family, said average monthly cable revenue per customer
increased 5.5 percent to $152.72 in the quarter.
Revenue rose to $1.63 billion from $1.57 billion a year
earlier, beating the average analyst estimate of $1.60 billion,
according to Thomson Reuters I/B/E/S.
Net income attributable to the company's shareholders fell
to $94.2 million, or 35 cents per share, from $135.4 million, or
51 cents per share, a year earlier.
Net income from continued operations was 34 cents per share,
handily beating the average analyst estimate of 17 cents per
Cablevision's shares were down 7.7 percent at $17.95 - their
biggest intraday percentage decline since January 2013 - in
afternoon trading on the New York Stock Exchange on Thursday.
(Additional reporting by Subrat Patnaik; Editing by Joyjeet Das
and Saumyadeb Chakrabarty)