Cablevision (CVC) posted solid third-quarter numbers on healthy demand for triple play services.
The Bethpage, N.Y., cable operator, whose go-private bid failed last month, lost $63 million, or 22 cents a share, compared with a loss of $63 million, or 22 cents a share in the year-ago quarter.
For the quarter ended in September, Cablevision reported sales of $1.24 billion. That compares to a top line of $1.12 billion a year ago. Analysts were looking for an adjusted loss of 8 cents a share on $1.23 billion in sales, according to Reuters Research.
Unlike many of its cable and telco peers, Cablevision showed continued core subscriber growth, albeit at a slow rate. Net new basic cable subscribers increased by 3,500, or about 2%, over last year's total.
Much of Cablevision's strength in the quarter came from its bundled offerings of phone, Internet and TV services. The number of high-speed cable modem customers increased by 80,570, or 5%, from the prior quarter ended in June. And phone subscribers grew by 122,851, or 26%, sequentially.
withdrawing a $7.9 billion bid to take the company private, the Dolans, Cablevision's controlling family, urged the board to pay shareholders a $3 billion dividend. The board said last week that it is
ready to pay that dividend, which could put more than $600 million in the Dolans' pockets.
Shares of the No. 6 cable company jumped 19% back in June after the Dolans said they would pay $7.9 billion for the 80% of the company they don't own. The proposed deal would have paid stakeholders $21 a share in cash, along with shares of the long-anticipated spinoff of media and entertainment assets into separately-traded Rainbow Media.
Cablevision was up 64 cents to $26.20 early Tuesday.