Cablevision Systems’ (CVC) cable business saw revenues of $5.8 billion in 2015, which represents a growth of 0.9% over 2014. This segment had an AOCF (adjusted operating cash flow) of $1.8 billion in fiscal 2015, which was down by 3.6% YoY (year-over-year). But in 4Q15, the company’s cable segment had the lowest customer churn that it’s had in the past six years.
As the chart below indicates, Cablevision’s cable business was a major contributor to the company’s revenues in 2015, with an 89% market share. The cable business continued to deploy WiFi access points in its usage areas and had 1.4 million WiFi access points as on December 31, 2015. The company had 1 million customers for its Optimum WiFi in fiscal 2015.
Cablevision also continued its focus on giving its customers a better service through new customer initiatives which “resulted in 23 percent fewer trouble call truck rolls and 33 percent fewer repeat trouble calls.” Cablevision had an average monthly cable revenue per customer of $155.88 in fiscal 2015.
How did it fare against its peers?
By comparison, Comcast’s (CMCSA) Cable Communications business had revenues of $46.9 billion in 2015—an increase of 6.2% YoY—while Charter Communications (CHTR) had revenues of $2.5 billion, which was up by 6.4% over 4Q14 with residential and business customers reaching 6.7 million in 2015.
Time Warner Cable’s (TWC) residential services business, which provides triple play services (high-speed Internet, voice, and video) had revenues of $4.8 billion in 4Q15—an increase of 4.6% over 4Q14. The revenues for Time Warner Cable’s business segment were primarily driven by high-speed Internet and voice services.
Comcast makes up 0.85% of the iShares S&P 500 Index ETF (IVV). For investors interested in exposure to computers, IVV has 3.8% of its total holdings in the sector.
Now let’s take a closer look at Cablevision’s latest performance by segment.