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Cablevision Systems (CVC) Tops Q1 Earnings and Revenues

Cablevision Systems Corp. CVC reported strong financial results in the first quarter of 2016 wherein both the top and the bottom line outpaced the respective Zacks Consensus Estimate.

Notably, on Sep 16, 2015, Cablevision and Altice N.V. had entered into a definitive agreement pursuant to which Altice has agreed to acquire Cablevision for a total consideration of around $17.7 billion. The deal recently received clearance from the Federal Communications Commission.

Quarterly GAAP net income was $94.4 million or 34 cents per share compared with $44.6 million or 16 cents per share in the prior-year quarter. First-quarter earnings per share significantly surpassed the Zacks Consensus Estimate of 17 cents.

Total revenue in the reported quarter came in at $1,640.8 million, up 1.6% year over year and ahead of the Zacks Consensus Estimate of $1,631 million.

Quarterly operating income was $251.3 million compared with $223.8 million in the comparable quarter last year. Operating margin was 15.3% compared with 13.9% in the prior-year quarter. Quarterly average monthly cable revenue per customer was $157.91 compared with $155.34 in the year-ago quarter.

In the first quarter of 2016, Cablevision generated approximately $152.6 million of cash from operations, down from $215.3 million in the prior-year quarter. Free cash flow in the reported quarter was $3.9 million, much below $49 million in the prior-year quarter. At the end of the reported quarter, the company had $933.5 million of cash and cash equivalents and $7,423.3 million of outstanding net debt.

Segment wise Revenues

The Cable segment’s revenues were $1,480.1 million, up 2% year over year. Within this segment, Video revenues totaled $785 million, down 2% year over year. High-Speed data revenues were $402 million, up 10.7% year over year. Voice revenues were $224 million, down 3.4% year over year. Advertising revenues grossed $30 million, down 3.2% year over year. Other revenues were $39 million, up 56% year over year. The Lightpath segment’s revenues came in at $91.8 million, up 0.7% year over year. Other revenues were $78.1 million, down 4.5% year over year.

Subscribers Statistics

As of Mar 31, 2016, Cablevision had 2.579 million video subscribers, 2.828 million high-speed data subscribers and 2.185 million voice subscribers. In the reported quarter, the company lost 15,000 video and 8,000 voice customers but gained 19,000 high-speed data customers.

Zacks Rank & Stocks to Consider

Cablevision Systems currently carries a Zacks Rank #1 (Strong Buy). Other favorably ranked stocks in the broader telecom sector include Rogers Communications Inc. RCI, TiVo Inc. TIVO and Liberty LiLAC Group LILA. All three stocks currently hold a Zacks Rank #1.

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CABLEVISION SYS (CVC): Free Stock Analysis Report
 
ROGERS COMM CLB (RCI): Free Stock Analysis Report
 
TIVO INC (TIVO): Free Stock Analysis Report
 
LIBERTY LILAC A (LILA): Free Stock Analysis Report
 
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