(Adds details, analyst comments, background, shares)
By Abhirup Roy
May 8 Cablevision Systems Corp reported
better-than-expected quarterly revenue as more advertising and
higher cable subscription rates offset the impact of a fall in
the number of video customers, sending its shares up as much as
The company, controlled by New York's Dolan family, said
average monthly cable revenue per customer rose 6 percent to
$148.22 in the first quarter ended March 31.
Revenue from cable advertising grew 16.8 percent.
Adjusted operating cash flow, Cablevision's most closely
watched metric, rose 24.8 percent, while capital expenditure
fell 20 percent.
"It looks like the business has stabilized. They have made
their investment in shoring up their service profile and now the
spending is coming down," Brean Capital analyst Todd Mitchell
He said the drop in capital expenditure was the "most
positive dynamic" he saw in the results.
Cablevision, however, lost about 14,000 video subscribers,
more than the 7,700 customers analysts were expecting, according
to research firm StreetAccount.
The cable company has been losing subscribers as it has cut
down on discounts and promotions to customers switching
providers often for better deals.
Cablevision has the largest exposure to Verizon
Communications Inc's pay TV service, which has been
taking customers away from cable companies in recent years with
aggressive pricing and promotions.
Cablevision posted a first-quarter net income of $89.8
million, or 33 cents per share, attributable to shareholders
compared with a loss of $16.1 million, or 6 cents per share, a
Revenue rose 4.3 percent to $1.58 billion, beating the
average analyst estimate of $1.56 billion, according to Thomson
Cablevision's shares were up 2.6 percent at $16.99 in early
trading on the New York Stock Exchange on Thursday.
(Additional reporting by Liana B. Baker in New York; Editing by
Simon Jennings and Kirti Pandey)