Good Morning
Good Morning

Cablevision swings to 3Q profit but cash flow falls

Cablevision Systems Corp. headquarters in Bethpage. Cablevision said

Cablevision Systems Corp. headquarters in Bethpage. Cablevision said it lost 37,000 net video subscribers in the third quarter of 2013. (Nov. 19, 2010) Credit: Bloomberg News

Cablevision Systems Corp. swung back to a profit for the third quarter after posting a loss for the period last year. But the Bethpage-based company, which owns Newsday, lost more video subscribers than expected, saw its cash flow fall and also showed a surprise loss of broadband subscribers.

Net income was $294.6 million, or $1.10 per share, for the quarter, compared with a loss of $3.8 million or 1 cent per share a year before. Revenue grew 1.8 percent to $1.57 billion.

Cablevision's most closely watched metric, its adjusted operating cash flow, fell 4 percent to $441.1 million.

President and chief executive James L. Dolan said in a statement, "We expect that the investments we are making in the business will yield results as we move forward."

Income from continuing operations rose to 22 cents per share from 1 cent in the year-earlier period.

Cablevision said it lost 37,000 net video subscribers -- which was worse than the loss of 17,200 customers Wall Street was expecting, according to StreetAccount. It also lost 13,000 high-speed data customers, when analysts were expecting it to gain 6,700.

In a quarterly filing with the Securities and Exchange Commission, Cablevision said that its remediation of damage from superstorm Sandy is complete. Most of the cost of the storm was incurred in the fourth quarter of 2012; such costs in 2013 totaled $7.6 million, the filing said, "primarily for repairs and maintenance."

Shares of Cablevision fell 55 cents, or 3.5 percent, to $15.08. So far this year, the stock of the company is up 14 cents, or 0.9 percent.

The cable service faces increased competition from Verizon Communications Inc.'s FiOS service, and like its cable rivals, it deals with rising prices that media companies charge to carry their networks.

With Newsday staff

More news