Cablevision Systems Class A Earnings Call Nuggets: Sandy-Related Costs and Triple Play
Cablevision Systems Corp Class A (NYSE:CVC) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
Benjamin Swinburne – Morgan Stanley: I just wanted to clarify a couple of things. Gregg, the $15 million of costs related to Sandy and legal, those were in cable correct?
Gregg G. Seibert – Vice Chairman and CFO: It was $8 million in the quarter in costs relating to Sandy.
Benjamin Swinburne – Morgan Stanley: Okay. And the legal costs of $7 million were those in cable or in other?
Gregg G. Seibert – Vice Chairman and CFO: The legal costs were in cable.
Benjamin Swinburne – Morgan Stanley: Then the growth into the second quarter, you expect to see double-digit sequential growth off of the reported (378), right, that’s the base we should use?
Gregg G. Seibert – Vice Chairman and CFO: Off of the reported AOCF for the Company, yes.
Benjamin Swinburne – Morgan Stanley: Got it. Then maybe just the last question, what are you guys seeing in the market in terms of the new Onyx guide rollout and how that’s impacting churn or customer reception? I know that’s been a big product push for you guys and is it completely deployed at this point?
Kristin Dolan – SVP of Product Management: We’re still in the process of deploying it. The response continues to be good, but it’s still too early to see churn impacts on that.
Marci Ryvicker – Wells Fargo: Just a little bit about the Triple Play and how you think about this, has it weakened at all, and if you could maybe talk about if there’s been migration in the high-speed data only, I don’t know in the recent past?
James L. Dolan – President and CEO: I think we still believe that the Triple Play delivers the most amount of value to our customers and so it continues to be one of our primary purchasing options for our customers. We are seeing continued growth in high-speed data, which just reflects that the product itself is so – was quite healthy.
Marci Ryvicker – Wells Fargo: Do you have a number that you can give us for the number of subs that are high-speed only or a percentage?
Gregg G. Seibert – Vice Chairman and CFO: We initially haven’t broken that out in the past Marci and I don’t think that, I don’t think we’re going to start now, but we are getting some more, but they tend to come in a double play format. Lot of the people have taken high-speed data without taking video are also taking telephone, and you’ll see that in our reported numbers.
Marci Ryvicker – Wells Fargo: Just a strategic question, you spin-off MSG and Rainbow and recently sold Clearview and Bresnan. So, how do you think about Newsday at this point?
James L. Dolan – President and CEO: I think Newsday is core asset for us. It’s – as you know we hold it in partnership with Tribune where we own 97% of that partnership. But Newsday for us is an important strategic asset as it fits in with our cable operations and our focus on providing the best in local news coverage to our customers in conjunction with Newsday.