Cablevision’s Internet Customers: Will They Be Solid in 1Q16?



Cablevision’s Internet customer additions in 1Q16

In the previous part of this series, we looked at analysts’ expectations for a continued decline in Cablevision Systems’ (CVC) video customers in 1Q16. We also looked at the reduction in the company’s video revenue in the cable segment in 4Q15. During the quarter, revenue from the high-speed data component supported overall growth in the cable segment’s revenue.

In the cable segment, revenue for the high-speed data component increased ~4.5% YoY (year-over-year) to ~$0.38 billion in 4Q15. Cablevision’s high-speed data customers increased ~1.8% YoY to reach ~2.8 million by the end of the quarter.

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Now let’s look at what Wall Street anticipates for growth momentum in the component’s customers in 1Q16. Analysts expect Cablevision’s Internet additions to decline during the quarter. As we can see in the above bar graph and according to Wall Street analysts’ consensus, Cablevision’s net Internet additions are expected to be ~2,000 in 1Q16. In 1Q15, this key customer metric was ~7,000.

Internet customer growth of some of the top cable players in 4Q15

During 4Q15, Internet customers of Charter Communications (CHTR) increased robustly by ~9.8% YoY to reach ~5.6 million. Time Warner Cable’s (TWC) high-speed data customers rose a huge ~8.7% YoY to ~13.3 million by the end of 2015.

By the end of 4Q15, Comcast’s (CMCSA) high-speed data customers increased by ~6.2% to reach ~23.3 million.

For a diversified exposure to some of the largest US cable companies, you can consider investing in the iShares Core S&P 500 ETF (IVV). Comcast (CMCSA), Time Warner Cable (TWC), and Cablevision made up ~1.2% of the ETF at the end of March 2016.


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