Cable Technology Feature Article
Cablevision Has Solid Revenue Growth for Telecom Services in Q1 2010
By Anuradha Shukla, TMCnet Contributor
The first quarter consolidated net revenues grew 5.2 percent to $1.752 billion compared to the prior year period, reflecting solid revenue growth in Telecommunications Services and Rainbow, offset by a decline at Newsday. Consolidated adjusted operating cash flow grew 7.6 percent to $610.4 million and consolidated operating income grew 21.6 percent to $355.1 million, both compared to the prior year period.
The operating highlights for the first quarter 2010 are as follows:
- Free Cash Flow from Continuing Operations of $240.5 million.
- Revenue Generating Units additions of 97,900 for the first quarter.
- Average Monthly Revenue per Basic Video Customer of $146.15 in the first quarter of 2010
- Cable advertising revenue growth of 35.1 percent in the first quarter of 2010, compared to the prior year period.
James L. Dolan, president and CEO, commented that Cablevision had a strong start to 2010 and subscriber increases across all of our consumer services, including basic video, fueled our growth in cable, and continued our industry-leading penetration rates for yet another quarter.
He adds that Rainbow National Services has achieved strong revenue growth and double-digit AOCF growth, driven largely by significant increases in both advertising and affiliate revenue and the company has also generated $240 million in free cash flow for the first quarter. Rainbow net revenues for the first quarter of 2010 increased 6.3 percent to $265.1 million, AOCF rose 7.3 percent to $76.7 million, and operating income grew 12.6 percent to $43.6 million, all compared to the prior year period.
Telecommunications Services net revenues for the first quarter 2010 rose 5.9 percent to $1.406 billion, AOCF grew 8.4 percent to $564.8 million and operating income increased 20.6 percent to $354.7 million, all compared to the prior year period. Cable Television first quarter 2010 net revenues increased 5.6 percent to $1.343 billion, AOCF rose 7.8 percent to $539.0 million and operating income increased 19.6 percent to $349.7 million, each compared to the prior year period.
In the Newsday segment, Newsday's first quarter 2010 net revenues decreased 10.4 percent to $74.7 million, AOCF improved $1.1 million to $1.2 million and operating loss improved $2.5 million to a loss of $4.7 million, all compared to the prior year period. The decline in revenue was primarily due to a 12.7 percent decrease in advertising revenue.
The board of directors of Cablevision has announced a quarterly dividend of $0.125 per share on each outstanding share of both its Cablevision NY Group Class A Stock and its Cablevision NY Group Class B Stock.
Anuradha Shukla is a contributing editor for TMCnet. To read more of Anuradha's article, please visit her columnist page.
Edited by Kelly McGuire