Cable Technology Feature Article
Cablevision Reports Q1 Profit Triples, Free WiFi Contributes to Success
By Kelly McGuire, TMCnet Editor
It's a good day in the cable neighborhood; at least for Cablevision, which reportedly has a first quarter profit that tripled from the same period last year.
The company reported a net income of $98.9 million, or 33 cents a share, compared with a profit of $30.9 million, or 10 cents a share, year-over-year.
In addition, revenue rose to $1.84 billion from $1.75 billion. Specifically, cable television revenue rose 4.5 percent over the third quarter of 2008, to $1.3 billion. Customers generating revenue rose by 2.9 percent from the same quarter last year.
According to TMC's CEO Rich Tehrani (News - Alert), a major differentiator in Cablevisions attractive services and, thus, elevated customer base is the company's decision to roll out its Optimum WiFi (News - Alert) service for free in metropolitan areas of New York, New Jersey and Connecticut, for current Cablevision subscribers.
"The service has come in handy for me in many instances and ensures customer loyalty. Researchers believe this subsidized offering is the reason Cablevision has had more than 70 percent sequential growth in net subscriber additions in the fourth quarter of 2008...a rate higher than any other cable operator in North America," Tehrani said in a recent blog post.
Coincidentally, Tehrani added, that AT&T's recent purchase of Wayport hints at the necessity Cablevision competitors feel the WiFi space is affecting and influencing consumers.
Kelly McGuire is a TMCnet Web editor, covering CRM and workforce technologies, and anchor of its daily TMC Newsroom video broadcast. Kelly also writes about eco-friendly "green" technologies and smart grids, compiling TMCnet's weekly e-Newsletters on those topics, as well as the cable industry. To read more of Kelly's articles, please visit her columnist page.
Edited by Kelly McGuire