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.
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
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