Cablevision Systems Corp. (NYSE: CVC - message board) posted in-line second quarter net revenue of $1.568 billion, up 12.3 percent year over year, marking growth in its telecom, Rainbow Media, and Madison Square Garden divisions.
That, coupled with lower capital expenses and the sale of the FSN Bay Area and FSN New England regional sports nets, helped the New York-based operator swing to a profit of $317.4 million, or $1.10 a share, up from earnings of $14.6 million, or 5 cents a share, a year earlier.
The MSO said telecom services revenues, covering its Optimum-branded residential cable and commercial offerings, jumped 12.8 percent to $1.18 billion. The cable-only unit saw revenues rise 13 percent to $1.13 billion, fueled by digital video, high-speed data, and voice subscriber growth.
The MSO added 39,000 digital video subs, up 12.3 percent from a year earlier. Cablevision ended the quarter with 2.55 million digital subs, a penetration rate of 81 percent.
Cablevision also added 50,000 high-speed data customers, a year-over-year increase of 14.6 percent.
The story was better with voice, as Cablevision signed on 81,000 new subs in the quarter, extending that sub base to 412,000.
While advanced service penetration continued to rise, Cablevision's basic video base was relatively flat. The company added 38,000 basic subs, up 1.2 percent versus a year ago. Cablevision had 3.14 million basic subs by quarter's end.
Looking ahead, the company adjusted 2007 guidance, noting it will "remain in a competitive environment," likely a reference to pressure being applied by Verizon Communications Inc. (NYSE: VZ - message board).
Cablevision now expects basic video subs to be flat, versus previous guidance of an increase of 1 percent to 2 percent. The operator also expects revenue growth to reach 11 percent versus earlier expectations in the "mid-teens." Cablevision also updated guidance on revenue generating unit (RGU) growth. It now expects to add between 825,000 and 900,000 RGUs, versus an earlier range of 850,000 to 950,000.