Cablevision: More spending, no price hike
Cablevision, of Bethpage, disclosed its spending and pricing plans when it discussed its fourth quarter earnings with analysts. Credit: Jack McCoy
Cablevision Systems Corp. said it plans to increase its 2012 spending to improve its Internet services but will not be increasing prices this year, a statement that sent its shares down 9.65 percent to $14.13 Tuesday.
Cablevision, of Bethpage, disclosed its spending and pricing plans when it discussed its fourth quarter earnings with analysts. Its net income fell to $60.5 million, or 22 cents per share, from $114.0 million, or 39 cents a share, in the period a year earlier. The company's earnings per share missed Wall Street estimates by a penny, according to Thomson Reuters I/B/E/S, which tracks analyst estimates.
Revenue rose 8 percent to $1.69 billion. Analysts had expected $1.68 billion.
The New York-area cable provider is grappling with the incursion of Verizon Communications Inc.'s FiOS service into its home market as well as the departure of two of its senior executives late last year.
Like larger rivals Time Warner Cable Inc. and Comcast Corp., it also faces a tough economy that discourages people from shelling out for extensive cable TV packages, and it increasingly relies on Internet services to drive revenue growth.
Cablevision, which owns Newsday, said it lost 14,000 video customers in the quarter. Wall Street analysts, on average, had expected a loss of 18,000, according to data compiled by StreetAccount. It added 20,000 high-speed data customers, more than the 12,000 analysts expected.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
Out East with Doug Geed: Wine harvests, a fish market, baked treats and poinsettias NewsdayTV's Doug Geed visits two wineries and a fish market, and then it's time for holiday cheer, with a visit to a bakery and poinsettia greenhouses.
