Cablevision reported some positive news today regarding its fourth-quarter profit, saying additional Internet and phone subscribers help increase its bottom line.

 

According to a Reuters report, Cablevision reported a profit of $78.4 million, compared with a year-earlier loss of $323.2 million, or $1.11 a share. In addition, shares for the New York area cable company grew by close to 4 percent and revenue was on pace with analysts’ projections, growing 5 percent to $2.15 billion. Analysts predicted revenue growth of about $2.10 billion, Reuters (News - Alert) said.

 

Chief Operating Officer Tom Rutledge said during a conference call that the company expected margins to continue to expand with its current pace of growth. During the call he also acknowledged.

 

During the fourth quarter, Cablevision said it added 45,700 Internet and 51,400 phone customers, despite the down economy. Rutledge said the company’s “biggest difficulty has been in lower income areas with high unemployment and I think if we were in a more robust economic climate, we would've had growth in the fourth quarter video subs.'  

 

While the company received growth in its Internet and phone business, it lost2,800 video customers, likely due to competition from  rivals like Verizon (News - Alert) Communications Inc and satellite companies, Reuters said. While more hits will likely come to the video business, analysts remained optimistic.

 

'They have weathered the storm from Verizon's FiOS (News - Alert) with remarkable success over the five years since Verizon's first incursion into Cablevision's business,' Bernstein Research Craig Moffett told Reuters.