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What: Shares of Cablevision Systems
So what: Fourth-quarter earnings fell to $60.6 million, or $0.22 per share, from $113.9 million a year earlier. At the same time, revenue grew 7.3% to $1.69 billion.
Now what: Pressure on the company's margins is coming from higher content costs, and the pressure doesn't seem to be letting up. Cablevision said it wouldn't increase rates this year to stem the loss of customers, and investors are concerned about the margin pressure. Cablevision is facing a common challenge of losing cable customers, and investors are worrying about falling margins and fewer customers leading to even lower profits in the future.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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