Cablevision Tops on Q4 Earnings, Revs - Analyst Blog

Cablevision Systems Corp. ( CVC ) reported strong financial results for the first quarter of 2014. Both the top and the bottom line surpassed the respective Zacks Consensus Estimate. For fiscal 2014, the company also expects some cash flow growth. Cablevision Systems currently has a Zacks Rank #3 (Hold).

Total revenue, in the first quarter of 2014 came in at $1,575.6 million, up 4.3% year over year and also outpaced the Zacks Consensus Estimate of $1,560 million.

Quarterly GAAP net income from continuing operations was $90.1 million or 33 cents per share compared with a net loss of $7.1 million or 3 cents per share in the prior-year quarter. However, first-quarter adjusted earnings per share of 14 cents were significantly above the Zacks Consensus Estimate of 2 cents.

Quarterly operating income was $207.1 million against $107.4 million in the last year's comparable quarter. Operating margin was 13.1% compared with 7.1% in the prior-year quarter. Quarterly average monthly cable revenue per customer stood at $148.22 compared with $139.80 in the year-ago quarter. Average monthly cable revenue per video customer was $168.34 against $156.34 in the prior-year quarter.

In the first quarter of 2014, Cablevision generated approximately $283.7 million of cash from operations against $189.4 million in the year-ago quarter. Free cash flow, in the reported quarter was $98.1 million against a negative $48 million in the prior-year quarter. As of Mar 31, 2014, the company had $768.1 million of cash and cash equivalents and $9,765.5 million of debt outstanding.

Segment Wise Revenues

The Cable segment's revenues stood at $1,417.1 million, up 4.5% year over year. Within this segment, Video revenues totaled $793 million, up 3.4% year over year. High-Speed data revenues were $347 million, up 5.2% year over year. Voice revenues were $220 million, up 5.3% year over year. Advertising revenues totaled $32 million, up 218.5% year over year. Other revenues were $25 million, up 8.7% year over year.

The Lightpath segment's revenues came in at $86.8 million, up 5.2% year over year. Other revenues were $81.5 million, down 1.7% year over year.

Subscribers Statistics

As of Mar 31, 2014, Cablevision had 2.799 million video subscribers, 2.788 million high-speed data subscribers and 2.280 million voice subscribers. In the reported quarter, the company lost 14,000 video subscribers but gained 8,000 subscribers each for high-speed data and voice.

Cablevision is facing fierce competition from the fiber-based FiOS video offerings of Verizon Communications Inc. ( VZ ). Apart from Comcast Corp. ( CMCSA ), all other cable TV operators are facing the brunt of fiber-based video offerings of Verizon and AT&T Inc. ( T ).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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