Cablevision Systems (CVC) Tops Q1 Earnings & Revenues

Cablevision Systems Corp. (CVC) is a leading cable MSO (multi service operator) in the U.S.  Cablevision provides video, high-speed broadband (Internet), telephony and WiFi services to individuals and business enterprises.

Over the last 5 years, the internal dynamics of the U.S. pay-TV industry have been gradually shifting from cable TV operators to large telecom operators and low-cost over-the-top service providers. Extensive network of fiber-based video services from telecom operators and the strong presence of online video streaming providers are posing significant threat to the existing cable TV business model. Meanwhile, cord-cutting has become a serious concern for major pay-TV operators. Cablevision is also facing all these negatives.

Nevertheless, in Feb 2015, Cablevision launched an innovative wireless service on WiFi networks. Named “Freewheel”, this service provides unlimited voice, data and text on Motorola’s Moto G smartphones. Cablevision’s Freewheel product may become a game changer for the wireless industry.

Cablevision currently carries a Zacks Rank #3 (Hold). The company has generated positive average earnings surprise in last four successive quarters with an average beat of a massive 71.11%. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Cablevision Beats Q1 earnings estimate. Our consensus earnings estimate called for an adjusted EPS of 17 cents while the company reported adjusted EPS was 20 cents. Investors should note that these figures take out stock option expenses.

Revenue: Cablevision reported total revenue of $1,614.8 million surpassing our estimate of $1,606 million.

Key States to Note: In the reported quarter, Cablevision lost 28,000 video customers. At quarter end, the company had 2.653 million video subscribers. Quarterly high-speed broadband customer addition was 7,000. At quarter end, the company had 2.767 million high-speed Internet subscribers. The company also lost 14,000 voice customers. At quarter end, the company had 2.215 million voice subscribers.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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