Nov 5 (Reuters) - Altice USA Inc missed expectations for third-quarter results on Tuesday due to weakness at its pay-TV division and the cable TV provider cut its full-year sales forecast, sending its shares down 10%.
Cable TV providers have been struggling as consumers continue to cancel their cable and satellite television subscriptions, also called “cord-cutting”, and increasingly shift to online video streaming such as Netflix Inc and Amazon.com Inc’s Prime Video.
The New York-based company now expects revenue growth of about 2.5% in 2019 compared to its prior forecast of 3.0%-3.5%.
Altice USA reported a marginal rise in its quarterly revenue at $2.44 billion, but fell short of analysts’ estimates of $2.48 billion, according to IBES data from Refinitiv.
Sales from Altice USA’s video segment, which contributed about 41% to the total revenue, fell nearly 6% to $993.2 million in the third quarter ended Sept. 30.
Net income attributable to the company’s stockholders rose to $77.2 million, or 12 cents per share, during the quarter, from $32.6 million, or 4 cents per share, a year earlier.
Analysts were expecting a profit of 15 cents per share.
The company’s shares were down about 10% at $28.20 in extended trade. (Reporting by Akanksha Rana in Bengaluru; Editing by Shailesh Kuber)
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