The nation’s fifth-largest cable provider announced a steep decline in profit for the fourth quarter, Fox Business reports.
Profit for Cablevision fell 47%, reflecting the loss of the company’s cable-networks division, including AMC, which was spun off last year. The New York-based company did have some good news, retaining more customers than expected.
Cablevision lost 14,000 video customers from the previous quarter, offset by the addition of 20,000 high-speed data customers and 31,000 voice subscribers, the story reports. Its telecommunications business totaled 3.61 million customers at year’s end, off 11,000 from the end of Q3.
Cablevision stock has fallen about 45% in the past year.
The story notes: “In recent trading, Cablevision shares declined 9.5% to $14.16, amid worries about the company’s ability to gain additional market share and offset ongoing increases in programming costs. Concerns about Cablevision’s operating business and leadership have also mounted in recent months, following the unexpected departure of its well-respected Chief Operating Officer Tom Rutledge late last year.”
The company said during a conference call with analysts that CFO Gregg Seibert and CEO James Dolan would assume Rutledge’s duties for the “foreseeable future.” The firm would not comment on why Rutledge left, the story reports.
Cablevision’s fourth-quarter profit was $60.6 million (22 cents per share), down from $113.9 million (38 cents a share) a year ago.