Cablevision Systems Corp. CVC reported strong financial results in the second quarter of 2015 with both the top and the bottom line surpassing the Zacks Consensus Estimate. Notably, the average monthly cable revenue per customer increased significantly in the reported quarter.
Quarterly GAAP net income from continuing operations was $75.6 million or 27 cents per share compared with $94.2 million or 34 cents per share in the prior-year quarter. Second-quarter earnings per share of 27 cents outpaced the Zacks Consensus Estimate of 24 cents.
Total revenue in the reported quarter came in at $1,653.4 million, up 1.6% year over year and also above the Zacks Consensus Estimate of $1,648 million.
Quarterly operating income stood at $244.5 million compared with $255.9 million in the comparable quarter of last year. Operating margin stood at 14.8% compared with 15.7% in the prior-year quarter. Quarterly average monthly cable revenue per customer was $158.52 compared with $152.72 in the year-ago quarter.
In the first half of 2015, Cablevision generated approximately $584.2 million of cash from operations against $707.5 million in the year-ago period. Free cash flow in the reported period was $207.3 million against $283 million in the prior-year quarter. As of Jun 30, 2015, the company had $796.6 million of cash and cash equivalents and $7,681.4 million of outstanding net debt.
Segment Revenues
The Cable segment’s revenues stood at $1,481.1 million, up 1.8% year over year. Within this segment, Video revenues totaled $813 million, up 0.9% year over year. High-Speed data revenues were $370 million, up 4.5% year over year. Voice revenues were $232 million, up 2.2% year over year.
Advertising revenues grossed $36 million, down 12.2% year over year. Other revenues were $30 million, up 11.1% year over year. The Lightpath segment’s revenues came in at $91 million, up 3.4% year over year. Other revenues were $91.3 million, down 3.7% year over year.
Subscribers Statistics
As of Jun 30, 2015, Cablevision had 2.637 million video subscribers, 2.781 million high-speed data subscribers and 2.208 million voice subscribers. In the reported quarter, the company lost 16,000 video subscribers, 7,000 voice customers but gained 14,000 high-speed data users.
Zacks Rank & Other Stock to Consider
Cablevision Systems currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include Chunghwa Telecom Co. Ltd. CHT, Nippon Telegraph and Telephone Corp. NTT and NTT DoCoMo Inc. (DCM. All three stocks currently sport a Zacks Rank #1 (Strong Buy).
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