Altice USA swings to a 4Q profit on growth, tax benefit
Altice USA swung to a profit in the fourth quarter from a loss in the same period a year earlier as the provider of cable television, internet and telephone services added customers and benefited from federal tax law changes.
Altice, which recently moved its headquarters from Bethpage to Long Island City, Queens, earned $2.3 billion in the final three months of 2017, compared with a loss of $236 million in the year-ago period.
The company recorded a $2.3 billion noncash deferred tax benefit related to the federal tax overhaul, which reduced the federal corporate income tax rate from 35 percent to 21 percent.
Revenue for the October-December period was $2.4 billion, up 2.6 percent.
Executives attributed the gain in part to 6,000 more residential customers, year over year, and the strong financial performance of its Optimum products on Long Island and in the metropolitan area.
For the year, Altice reported a profit of $1.5 billion on revenue of $9.3 billion.
The results exclude Newsday Media Group, in which Altice owns a 25 percent stake.
The earnings announcement came after the stock market closed. In after-hours trading, Altice shares rose 52 cents, or 3 percent, to $19 on the New York Stock Exchange.