Cablevision Reports First-Quarter Loss as Video Customers Leave
Cablevision Systems Corp. (CVC), the fifth-largest U.S. cable provider by subscribers, reported a first-quarter loss after video customers departed.
The loss per share was 6 cents, the company said in a statement, trailing the 4-cent average analyst estimate compiled by Bloomberg. The net loss was $16.1 million, compared with profit of $57.2 million, or 21 cents, a year earlier.
Cablevision reported a loss of 5,000 video customers and added 23,000 broadband subscribers, compared with the 24,000 average analyst estimate. The Bethpage, New York-based company is still reeling from Superstorm Sandy, which caused damage and thousands of cancellations in October.
“They’re still in a questionable situation after Sandy,” Frank Louthan, an analyst at Raymond James & Associates Inc. in Atlanta, said before the results were released. “Investors are going to be looking for when they feel comfortable enough with capital for an increase in a dividend or returning to buying back shares.” He has the equivalent of a buy rating on the stock.
The company didn’t buy back any shares in the first quarter, the second consecutive quarter Cablevision didn’t make any repurchases, to save money to pay for damages and costs from Sandy.
Sales fell less than 1 percent to $1.52 billion. Analysts had estimated $1.58 billion.
Cablevision added 23,000 phone customers. Average monthly revenue per user was $156.34, less than the $159.02 average analyst estimate.
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