Cablevision in 4Q15 and 2015
Cablevision Systems (CVC) announced its 4Q15 and 2015 earnings on February 25, 2016. The company reported revenues of $6.5 billion in 2015, which was up by 0.8% over 2014. The company’s revenues in 2015 were in line with consensus Wall Street analyst estimates. For 4Q15, the company reported revenue of $1.6 billion, which again met Wall Street analyst estimates, though the company’s revenues in 4Q15 were down by 0.1% over 4Q14.
Cablevision reported a diluted EPS (earnings per share) of $0.68 in fiscal 2015, which was below consensus Wall Street analysts’ expectations of $0.72 per share.
The company’s total customer relationships had net additions of 2,400 in fiscal 2015—its “first year of organic growth in total customer relationships since 2008.” These net customer additions were primarily driven by the increase in the company’s high-speed Internet customers in the New York region in 2015.
Net customer additions versus peers
By contrast, Comcast (CMCSA) had net customer additions of 666,000 in fiscal 2015—a phenomenal 86% year-over-year improvement driven by the company’s high-speed Internet and video businesses. Charter Communications (CHTR), meanwhile, had net residential customer additions of 82,000 in fiscal 4Q15. By comparison, Time Warner Cable (TWC) saw net customer additions of 618,000 in fiscal 2015.
Cablevision Systems makes up 0.04% of the iShares S&P 500 Index ETF (IVV). For investors interested in exposure to computer companies, IVV has 3.8% of its total holdings in the sector.
Now let’s take a look at Cablevision Systems’ customer churn.