Stock falls by more than 6% Thursday
Cablevision is putting its Clearview Cinemas subsid on the block as execs said the exhib isn’t core to its business.
Clearview has 45 locations with 230 screens and is losing money.
“‘We think someone else could do better with that asset than we could,” said chief financial officer Gregg Seibert on a conference call Thursday to discuss quarterly earnings. “Hopefully it will be a robust process.”
Cablevision’s net income plunged to $57 million from $104 million after spinning off AMC Networks last year and on a major ramp up in capital spending to upgrade and digitize its network. The extent of the spending — of $216 million last quarter — took Wall Street off guard and sent Cablevision stock down by more than 6% in early trading.
Revenue was flat at $1.66 billion.
Bucking the industry trend, the company added 7,000 basic video subscribers. It also added 41,800 high-speed data subs and 42,400 voice subs.
Average monthly revenue per basic video sub rose 1.9%.
Alluding to a recent stream of executive departures — including chief operating office Tom Rutledge late last year — CEO James Dolan said they were a necessary part of reshaping the company for the future and that he would keep a tight rein on the business.
“I plan in staying right where I am, in the operational role that I am in, for some time. At least through this year and beyond because we have a lot of work to do and I feel that I need to be right here to do it.”
He told investors “to not anticipate that I am going to fill some of those positions that were vacated.”