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 substantial 38.02%. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Cablevision Beats Q2 earnings estimate. Our consensus earnings estimate called for an adjusted EPS of 24 cents while the company reported adjusted EPS was 27 cents. Investors should note that these figures take out stock option expenses.
Revenue: Cablevision reported total revenue of $1,653.4 million surpassing our estimate of $1,648 million.
Key States to Note: In the reported quarter, Cablevision lost 16,000 video customers. At quarter end, the company had 2.637 million video subscribers. Quarterly high-speed broadband customer addition was 14,000. At quarter end, the company had 2.781 million high-speed Internet subscribers. The company also lost 7,000 voice customers. At quarter end, Cablevision System had 2.208 million voice subscribers.
Check back later for our full write up on this Cablevision earnings report later!
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