Feb 11, 2003 12:00 PM,

Cablevision posts operating profit

Toby Weber

CableVision Systems today reported fourth quarter pro forma revenue and income that rose slightly compared to the fourth quarter of 2001.

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For the three months ending Dec. 31, the company’s posted pro forma revenue of $1.15 billion, up from $1.11 billion in the year-ago period. Pro forma net income for the quarter was $517.4 million, significantly better than loss of $281.6 million reported a year ago.

The company’s telecommunications services unit, which includes video, cable telephony and broadband services, posted revenues for the quarter of $617.7 million, up 8% year-over-year. Of that figure, $583.4 million came from the company’s consumer video, data and telephony offerings.

During the quarter, Cablevision more than doubled the number of homes capable of receiving digital services, going from 1.6 million homes to 3.4 million out of the company’s 4.4 million homes passed. The company added more than 136,000 digital video customers during the quarter, bringing its total to 216,500. High-speed data adds for the period exceeded 90,100, giving Cablevision approximately 770,100 subscribers to the service.

For 2003, the company is forecasting its telecommunications unit will post revenue growth of between 12% and 14%. Cablevision expects to add approximately 23,000 to 28,000 high-speed data customers for the year, ending 2003 with between 1 million and 1.05 million subscribers. It’s highest growth, however should come from the number of customers receiving digital video, which the company expects to increase more than three fold to between 800,000 and 825,000 subscribers.

“We think the overall enhancement of our video services with the additional rollout of significant digital boxes across our footprint will make us more competitive and gives us a superior product to satellite,” said Tom Rutledge, president of the company’s cable and communications operations. “As a result of having a superior product we think we can change perceptions in the market on cable versus satellite and begin to take back what we’ve lost.”

The company’s consolidated revenue, which includes its programming properties, ownership of Madison Square Garden and other properties, is projected to grow between 10% and 12% for the year.