In its first quarter without COO Tom Rutledge running its cable operations, Cablevision (NYSE: CVC) said it added 7,000 basic video subscribers during the first quarter. While its net income dipped by 3 cents per share compared to this time last year, the MSO posted its best quarter in terms of subscriber growth since 2008.

Cablevision, which has been engaged in a bitter marketing war with Verizon (NYSE: VZ) and its FiOS products in the New York metropolitan area, has been hammered by Wall Street analysts since Rutledge quit in December and joined Charter Communications as CEO. Jim Dolan has taken control of its cable operations, and several Cablevision EVPs have resigned.

But Dolan's decision in February to step up Cablevision's marketing efforts and not raise the monthly fees Cablevision charges for its Optimum digital cable, high-speed Internet and telephone products appears to be paying off. In addition to picking up 7,000 basic video subscribers, Cablevision gained 41,800 high-speed Internet subscribers and 42,400 voice customers. The average Cablevision basic video customer spent $152.52 monthly for its Optimum services, which was an increase of $2.78, or 1.9 percent.

Cablevision is looking to rally investors, announcing Thursday that its board authorized a $500 million share repurchase plan. The company said it will also pay a quarterly dividend of 15 cents per share on June 1.

Dolan told investors on an earnings call in February that the MSO would increase capital spending and focus on innovation to drive long term growth. Cablevision's capital spending increased sharply during the first quarter to $216 million, up about $85 million compared to the first quarter of 2011. It spent $60 million on customer premise equipment, up about $8 million from this time last year. It also spent $57 million on scalable infrastructure, which was an increase of about $28 million compared to the first quarter of 2011.

Cablevision posted $1.659 billion in net revenue, up 0.2 percent. Operating cash flow decreased 7.6 percent to $513.5 million. It posted $57.1 million in net income, down about $47 million compared to the same period last year. Earnings per share decreased by 3 cents to 21 cents per share.