Cablevision Systems Corp. brought in a third quarter profit, but didn't hit the numbers analysts predicted. The company added phone customers but, more ominously, lost TV customers.
With a diverse portfolio including cable TV, a bundle of cable channels including AMC, a newspaper and Madison Square Garden, CVC reported earning of $27.1 million and 9 cents a share, with net revenues of $1.74 billion; analysts were expecting earnings around 13 cents a share and revenues of $1.68 billion.
Driven by digital video, broadband Internet and phone services, cable TV revenues rose 10 percent to $1.25 billion. The company added 31,600 broadband customers, up 1.3 percent from the second quarter and 9.4 percent from this time last year. Digital phone customers went up by 58,000, a 3.3 percent increase from last quarter and 22.5 percent over 3Q07.
However, basic cable subs dropped 19,100 from the second quarter, a loss that might be attributed to Verizon's FiOS starting to take root in Cablevision's backyard; earlier forecasts had predicted a loss of around 12,000 subscribers. Earlier this month, Comcast and Time Warner also reported basic cable losses.
For more:
- MarketWatch reports on Cablevision 3Q results.
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