Cable One says move away from video paying off as 11.5K TV subs flee but income rises 24.3%

Cable One Headquarters (Courtesy of Cable One)

Cable One says its movement away from video services is no longer just an “experiment.”

Despite the loss of another 11,542 video customers in the second quarter, the Phoenix, Ariz. MSO drove its net income up by 24.3 percent to $26.6 million.

“We’ve shaken off our dependence on video,” declared Thomas Might, CEO of Cable One, speaking to investors during today’s earnings call. One year in as a public company, and four years after embarking on a strategy to emphasize residential and business internet services, Might added that it “is gratifying to finally have some strong empirical evidence, so we can move out of the experimental phase” of the transition.

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Cable One has lost 15.6 percent of its residential video customer base in the last year, as well as 13.9 percent of its residential voice subscribers, but saw total revenue increase by 1 percent in the second quarter to $202.6 million.

Residential data and business services revenue grew to 54.1 percent of total revenue for Cable One compared to 46.6 percent in the second quarter of 2015.

Notably, like total revenue, the MSO’s high-speed internet user base hasn’t grown explosively. It ended the second quarter with 465,603, up only 1.8 percent in one year. Business HSD users have grown at a more robust clip of 7.8 percent over the 12-month period. 

Rate increases on residential HSD services, however, help drive an 18.7 percent improvement on sector revenues in the quarter to $86 million. 

Business services revenue in the second quarter, meanwhile, rose 12 percent to $24.5 million.

For more:
- read this Cable One earnings release

Related articles:
Cable One customers hit by phishing scam
Cable One's pay-TV retrenchment continues, loses 25K subs in Q4
Thomas Might on Cable One's transformation and how much time it has left in the video business
Cable One loses another 13K residential video subs, gets ready to tack on a $5 retrans fee

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