While most cable and satellite TV providers are reporting that they lost basic video subscribers during the second quarter, Cablevision (NYSE: CVC) said its video subscriber count remained flat during the quarter and that it grew high-speed Internet and telephone customers.
The MSO, which had gained 7,000 subscribers during the first quarter, said it ended the quarter with 3.26 million subscribers. It picked up 25,000 cable modem subscribers and 23,000 voice customers.
Cablevision CEO Jim Dolan announced earlier this year that Cablevision wouldn't raise the rates on its triple-play package or hardware during 2012. That move could be helping Cablevision retain subscribers, as Verizon (NYSE: VZ), its biggest rival, has hiked the fees on its FiOS TV programming and equipment packages this year.
Cablevision generated $1.5 billion in cable television revenue during the second quarter, up 0.7 percent compared to the same period last year. Revenue from its Optimum Lightpath division, which markets high-speed Internet and phone service to business customers, increased 5.2 percent to $81.1 million.
The average video customer at Cablevision spent $155.12 on its Optimum bundles during the second quarter, up slightly from $152.36 during the second quarter of 2012. Cablevision, which saw a significant improvement last month in the FCC's Measuring Broadband America report, said capital spending on consumer premise equipment jumped nearly $40 million to $92.6 million during the second quarter.
Cablevision posted $63.5 million in net income (24 cents per share), down from $87.8 million (32 cents per share) during the second quarter of 2011.
- see the earnings release
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