Cablevision reports drop in earnings, adds video customers

Cablevision Systems Corp., the fifth-largest U.S. cable provider by subscribers, reported profit that topped analysts’ estimates after adding video customers.

Earnings fell to 21 cents a share from 36 cents a year earlier, the Bethpage-based company said Thursday in a statement. Analysts predicted 18 cents, the average of estimates compiled by Bloomberg. Sales rose 2.2 percent to $1.66 billion, compared with the $1.67 billion analysts projected.

With more than 15,400 employees and a market capitalization of about $4 billion, Cablevision's shares were down $1.33 to $13.37 in midday trading Thursday, on the low end of its 52-week range of $11.57 to $36.86.

Cablevision, which owns Newsday, gained 7,000 video customers in the quarter. Analysts projected a loss of 7,000 such users, the average of 12 estimates in a Bloomberg survey. The carrier is focusing on improving its broadband speeds and video offerings under chief executive James Dolan, who is running cable operations after chief operating officer Tom Rutledge left in December.

“The New York housing market is a little bit stronger than people think, and it’s helping Cablevision,” said Rich Tullo, a New York-based analyst at Albert Fried & Co., who has a buy rating on the stock. “The business is strong, they have just have to keep working on the execution.”

Net income fell to $57.2 million from $104.1 million a year earlier, before the spinoff of AMC Networks Inc. That unit added $35 million, or 12 cents a share, to the year-earlier quarter’s profit.

Cablevision added 41,800 broadband subscribers, compared with the average analyst estimate of 24,000. Phone customers increased by 42,400, more than the 26,000 analysts projected.

Cablevision bought back $59.2 million in shares in the quarter and said its board authorized $500 million in new buybacks. Its shares fell 2.1 percent to $14.70 Wednesday. The stock had advanced 3.4 percent this year before Thursday.

Photo: Cablevision headquarters in Bethpage.

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