Cablevision’s cable business sparks revenue growth

Despite a bitter battle over broadcasting the New York Yankees, and a loss of subscribers tied to the 9/11 tragedy, Cablevision Systems followed the cable trend of posting positive first-quarter revenues due mainly to its cable operations.

Cablevision, the Long Island-based cable operator, said its first-quarter revenues rose 5% to $1.12 billion from $1.05 billion a year ago. The company, whose holdings also include sports teams, Madison Square Garden and The Wiz retail stores, posted a net loss of $249.6 million compared with a year-earlier profit of $1.13 billion.

Telecommunications net revenues rose to $593.1 million, a 13% increase, the company said, based on increased subscribership for digital video, data and telephony services.

The results were tempered by the loss of 7000 subscribers, 4300 of whom left the company in January in a roll off of subscribers who joined Cablevision when they lost broadcast signals from antennas that were on the World Trade Center. Additional customers fled the company in March and April as a result of the ongoing dispute over Yankees coverage.

The YES Network, which has broadcasting rights to the Yankees, sued Cablevision this week in an effort to get carriage before the company’s 3 million subscribers.

“We continue to believe that the proper place for the YES Network is on a premium or a la carte tier so that customers have the choice whether or not to purchase the games,” said Cablevision President CEO Jim Dolan. “We do not believe this week’s lawsuit should be an impediment to negotiations, and we stand ready to discuss with YES any reasonable proposal.”

Broadcasting hassles aside, the service provider, like its cable brethren, benefited from growth in both digital cable and high-speed data services.

Cablevision’s online service grew by 53,000 new customers, averaging about 4100 new sign-ups per week. Penetration rates rose to 18% from 13% a year ago, with 29% subscription in Long Island and 22% in Connecticut, said Tom Rutledge, New York Metropolitan Area president.

Additionally, the company’s Lightpath telecommunications offerings of voice, high-speed data and Internet-related services to businesses in the New York metropolitan area had a 27% revenue increase to $37 million and a cash flow that more than doubled to $10 million, Rutledge said.

In other cable news, Insight Communications released preliminary financial results that indicated a 10.1% revenue increase. Insight will detail its first-quarter results May 10.