Cable One net income up 7.5% as programming costs decline to 2009 levels

Cable One installer
Image: Cable One

Continuing its aggressive weight-loss regimen – shedding video subscribers, programming costs and employees – Cable One reported 7.5 percent growth of net income in the third quarter to $20.9 million.

The company said its priority revenue streams, residential high-speed internet and business services now account for 55 percent of its revenue, which increased 3.7 percent in the third quarter to $205.5 million. 

The Phoenix, Arizona-based MSO continued to forsake its video business, which lost another 9,393 customers in the third quarter. Residential video revenue decreased $7.4 million year-over-year, or 9.1 percent, with pay-TV customers down about 51,000 over the last 12 months to 315,589. 

RELATED: Thomas Might on Cable One's transformation and how much time it has left in the video business

Cable One has also de-prioritized voice service, and customers for that service are down 12.8 percent in the last year to 100,510. Residential voice revenue declined 12.3 percent to $10.3 million in the third quarter.

However, residential high-speed internet revenue increased 18.8 percent to $86.8 million, and business services revenue grew 13.2 percent to $25.4 million. 

“This is high-level evidence of our four-year strategy to focus on residential data and business services,” said Cable One CEO Thomas Might to investors during today’s earnings call.”

Cable One’s head count is down 7.6 percent, or 157 employees, year-over-year. Might said truck rolls are down 57 percent compared to 2008 levels. 

But apparently, Cable One employees are smiling away as their departing colleagues packed their boxes over in the next cubicle. 

Might said that despite the attrition, employee feedback recently revealed that his staff had never been so “pumped up” in the 20 years he’s been annually polling them.