Cable ONE gives small-town folk CNN and The Cartoon Network. The company provides cable television service primarily to small, non-urban communities. Its core service areas are the Gulf Coast region and western Idaho. More than 700,000 subscribers receive cable television service from Cable ONE, and about half of those are also signed up for broadband Internet access sold under the CableONE.net brand. The company also offers voice-over-Internet-protocol (VoIP) computer telephony and digital video services. Former parent Graham Holdings spun off the company in mid-2015.
Change in Company Type
In 2015, Cable ONE became a publicly traded company in 2015 when it was spun off by Graham Holdings Company.
Cable ONE offers the range of services usually available from a cable company from video to voice and data. Most of its revenue, about 44%, comes from video services delivered to homes. Another 32% comes from residential data services while data, voice, and video services account for about 9%. Just some 8% of revenue comes from residential voice while ad sales brings in about 4%.
Cable ONE has operations in 19 states throughout the midwestern, southern, and western US.
In 2014, Cable One's revenue ticked down 1% to about $815 million from about $825 million in 2013. The company lost customers in residential video and voice, but made gains in customers for residential data customers and business services. An increase in rates for video services helped cushion the loss of customers. Despite the sluggish revenue picture, Cable ONE tuned in a 41% increase in net income for 2014. Profit reached some $147 million compared to $104 million in fiscal 2013. The company cut operating costs year-to-year and saw gains in other income. Cash flow from operations decreased 13% to about $206 million from $236 million in 2013. The decrease came with a change in working capital items.
Cable ONE became an independent company at a time of intensifying competition for cable companies. The industry consolidating with acquisitions among the biggest companies in the category and the appearance of international companies buying US cable assets. Cable ONE is borrowing from the Walmart playbook on one way in that is focuses on larger non-metro areas. But it diverges from the Walmart strategy in another way by going after higher value residential customers who buy more -- and more expensive -- services. Cable One also emphasizes the sale of data services to residential and business customers.