Cablevision Profit Falls 56%

Cablevision Systems Corp. (CVC) said its fourth-quarter earnings fell 56% despite stronger revenue.

Cable operators generally have been losing video subscribers for several years to satellite TV and phone rivals, but most have been able to offset those losses with gains in broadband and phone.

In addition to challenges from promotions and discounts to attract customers, the pay-TV sector also is in the midst of a consolidation trend. Comcast Corp. recently made a $45 billion bid for Time Warner Cable Inc., a deal that would combine the two largest cable operators.

In the latest period, total customers declined by roughly 7,000 to 3.2 million from the third quarter as declines in video customers offset growth in high-speed data customers.

Cablevision reported a profit of $51.8 million, or 19 cents a share, down from $116.5 million, or 45 cents a share, a year earlier. The year-earlier period included a 74 cents a share contribution from discontinued operations. Revenue increased 4.5% to $1.58 billion.

Analysts polled by Thomson Reuters expected per-share profit of nine cents and revenue of $1.57 billion.

Average monthly cable revenue per customer rose 4.6% after adjustments from year-earlier storm credits.

Cable net revenues for the fourth quarter 2013 increased 5.2% to $1.41 billion, mostly reflecting higher data rates, higher video revenues and the impact of Superstorm Sandy in 2012.

Write to Tess Stynes at [e-mail]

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