Cablevision Posts Subscriber Growth on High-Speed Data Gains

Cablevision Systems Corp. added about 5,000 subscribers in the second quarter, as its strongest growth in high-speed data customers in more than two years offset continued losses in its video businesses.

The company's profit topped expectations, while revenue was in-line.

The results come amid growing concern about the future health of the TV ecosystem, as younger consumers increasingly turn away from pay-TV to the Internet for their viewing.

Shares in many big media companies have been battered in trading this week after a string of weak earnings reports. Cablevision shares are down 6% this week through Thursday's close. Cablevision has been aggressively targeting viewers who are looking to "cut the cord." The company has unveiled a variety of efforts targeted at these customers in recent months: from $15-a-month streaming-video service unveiled in July to becoming the first pay-TV provider to saying it will offer HBO's stand-alone streaming.

Cablevision said its total customers—businesses or households that subscribe to at least one service—grew to 3.12 million as of June 30 from 3.11 million as of March 31. The company lost 16,000 video subscribers and 7,000 voice subscribers. But it added 14,000 high-speed Internet customers, bringing its total to 2.78 million as of June 30.

Cablevision said the growth represented its largest quarterly gains in customer relationships and high-speed data in more than two years.

Average monthly cable revenue per customer rose 3.8% from a year ago to $158.52.

In all, for the quarter ended June 30, Cablevision posted a profit of $75.6 million, or 27 cents a share, down from $94.2 million, or 35 cents a share, a year earlier.

Revenue fell 1.6% to $1.65 billion.

Analysts had projected 25 cents a share in profit and $1.65 billion in revenue, according to Thomson Reuters.

Write to Chelsey Dulaney at [e-mail]

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