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What: Shares of Cablevision (UNKNOWN:CVC.DL) were getting kicked off the air today, falling as much as 12% today, after the media company posted a disappointing quarter, in part due to the effects of Hurricane Sandy.
So what: The Long Island-based cable provider reported a loss on continuing operations of $0.32 a share, way below expectations of $0.09 per-share profit. Management blamed Sandy for part of the losses, saying it disrupted service for 60% of customers in the New York region, and damaged more than 450 miles of cable lines. Revenue dropped 1.6%, to $1.66 billion, slightly below estimates of $1.7 billion.
Now what: Factoring in a gain on a settlement from a lawsuit with Dish Network, Cablevision actually made a profit of $0.45 per share, which helps make up for the otherwise miserable quarter. Considering that revenues were relatively in line with estimates, there doesn't seem to be much concern for long-term problems, as the loss this quarter stemmed from outsized costs from Sandy. While competition also seems to be affecting Cablevision, I expect more normal results to return in its next report.
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