BETHPAGE, N.Y. (AP) — Cablevision Systems Corp., the New York-area cable company and the owner of the AMC cable network, reported Thursday that first-quarter net income rose 40 percent, helped by the purchase of a smaller Western cable company and improvement in most of its businesses. But results missed analyst expectations.
The Bethpage-based company’s net income was $104.1 million, or 36 cents per share, for the first three months of the year. That was up from $74.2 million, or 24 cents per share, a year earlier.
Analysts were expecting higher earnings, at 41 cents per share.
Revenue rose 10 percent to $1.92 billion. Analysts polled by FactSet were expecting $1.94 billion.
Cablevision shares fell $1.36, or 3.9 percent, to close Thursday at $33.91.
Growing profits from its cable business, particularly from the sale of telecommunications services to businesses, and a rebound in advertising for its cable networks were partly offset by higher losses from a segment that includes the Long Island-based Newsday daily newspaper and a theater chain.
Analyst Michael McCormack at Nomura Securities said that although results missed expectations, Cablevision shares represent an opportunity for investors willing to look past the first few quarters of the integration of Bresnan Communications, a Western cable company Cablevision bought in the fourth quarter. McCormack also believes Cablevision’s planned spin-off of its cable networks will unlock shareholder value.
Cablevision raised its quarterly dividend to 15 cents per share from 12.5 cents per share. The new dividend is equivalent to an annual yield of 1.8 percent.
Copyright 2011 The Associated Press.