Mario Gabelli Comments on Cablevision Systems Corp

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Nov 21, 2014

Cablevision Systems Corp. (0.9%) (CVC - $17.51 - NYSE) provides broadband, television, and phone service to over three million subscribers in the New York metropolitan area. An industry pioneer, CVC has developed the most advanced cable plant in the country and converted over 70% of its subscribers into triple play (video, phone, and broadband) customers. In the process, Cablevision achieved industry leading average monthly subscription revenues and margins. This peak performance led the company to become a victim of its own success; combined with competition from Verizon FiOS (0.3%) in approximately half its footprint, Cablevision saw reduced growth and a sagging share price in 2012/2013. The company’s efforts to address these declines appear to be paying off. Management has also been active on the financial front, spinning off Madison Square Garden (0.8%) in February 2010 and AMC Networks (0.6%) in June 2011 and repurchasing over 10% of shares outstanding. Cablevision is now a single-market, pure-play cable operator, which could facilitate an eventual consolidation of the company in our view.

From Mario Gabelli (Trades, Portfolio)’s Asset Fund Q3 2014 Commentary.