Verizon's FiOS service voice may be getting louder in New York, but that's not slowing down Cablevision's momentum, or at least not yet. During the second quarter, the MSO reported that consolidated net revenue increased 9.8 percent to $1.8 billion. The MSO attributed these results to ongoing growth of its telecom services and Rainbow operations. Cablevision's Adjusted Operating Cash Flow (AOCF) rose 6.8 percent to $636.3 million, while consolidated operating income rose 15 percent to $336.5 million.
Of course, the MSO saw a number of wins and losses during the second quarter. On the loss side, Cablevision's net income dropped to $87 million compared to $94.7 million in Q2 08. During the second quarter, Cablevision said it lost 8,700 video subscribers. However, digital video, cable modem data and cable telephony subscribers increased during the quarter. At the same time, Cablevision added 56,000 digital video subscribers, 17,900 data subscribers and 37,600 voice customers. To sweeten its service set, Cablevision expanded its WiFi footprint into the Rockland and Orange counties in New York.
Despite the momentum Cablevision has gained in its New York, Patti Reali, directing analyst for Trender Research, said in a CED article that the MSO will need to be creative to thwart the Verizon FiOS threat. "The company seems to be holding up pretty well against the competition so far," she said "So long as they continue to add value, with things like Wi-Fi and eventually, RS-DVR, and interactive applications, and keep customer service levels high. But they are up against a real juggernaut in Verizon FiOS, which is posting gains in the hundreds of thousands across the markets where it operates, not single digit thousands."
Cablevision posts Q4 2008 loss, adds more phone lines