What Kind of Growth Does Altice Expect for Cablevision?
On a YoY (or year-over-year) basis, Suddenlink’s revenue rose ~6.7% to reach ~$0.63 billion in 1Q16.
Nov. 20 2020, Updated 11:10 a.m. ET
Altice on Cablevision’s growth
In the earlier parts of the series, we learned that Altice’s (ATCEY) Cablevision (CVC) acquisition recently closed. This was Altice’s second expansion in the US cable space after the Suddenlink acquisition in December 2015. Dexter Goei, chief executive officer of Altice USA, recently highlighted, “Cablevision being in a more mature highly penetrated market obviously is not going to see the same revenue growth metrics as a Suddenlink, but we think we can do things on the revenue side.”
He added, “We’re going to be very focused on the top line and make sure that we continue to grow the business.”
Cablevision and Suddenlink’s performance in 1Q16
On a YoY (or year-over-year) basis, Suddenlink’s revenue rose ~6.7% to reach ~$0.63 billion in 1Q16. The company’s Internet component drove this growth. The company’s high-speed data revenue continued to grow robustly during the quarter. Suddenlink’s high-speed data revenue rose ~17% YoY to reach ~$0.24 billion for the quarter.
Meanwhile, Cablevision’s revenue grew marginally by ~1.6% YoY to ~$1.6 billion during the quarter. The company’s cable segment’s revenue increased by ~2% YoY to reach ~$1.5 billion in 1Q16. This growth came mainly from the high-speed data component of the cable segment.
In 1Q16, Cablevision’s other component continued to negatively affect the company’s top line.
For diversified exposure to the top two cable companies in the US, you can consider investing in the PowerShares QQQ (QQQ). The ETF held a total of ~4.1% in Comcast (CMCSA) (CMCSK) and Charter (CHTR) as of June 22, 2016.