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Cablevision Turns to Profit in Q2

Aug 9, 2005  •  Post A Comment

Cablevisions Systems said Tuesday that it swung to a profit in the second quarter as its strategy of offering customers a triple-play package of video, data and voice services continued to help the company rack up gains during the period.

Bethpage, N.Y.-based Cablevision reported second-quarter profit of $222 million, compared with a $187.1 million loss a year ago. Revenue advanced 6 percent to $1.2 billion.

The company, which also owns cable programming company Rainbow Media Holdings, attributed most of the success to its core cable operations, which reported growth in virtually every business line, including basic-cable subscribers.

The company added nearly 21,000 basic-cable subscribers in the quarter, which is traditionally a challenging one for basic sub growth. The company also added 118,500 digital-cable subscribers, as well as nearly 80,000 high-speed data customers. The company’s voice over Internet protocol product rose by 114,000 customers in the quarter.

That growth helped offset weakness at Rainbow, which, despite an increase in revenue at its core cable channels AMC, WE: Women’s Entertainment and IFC, saw its overall revenue decline 17 percent to $204.2 million. The decline was due to lower affiliate-fee revenue at Fox Sports Net Chicago, which lost the rights to carry Chicago’s four professional sports teams and has not received affiliate-fee payments in accordance with an existing affiliate agreement.