UPDATE 1-Altice USA reports quarterly profit due to tax gains

(Adds background, details on quaterly results)

Feb 27 (Reuters) - U.S. cable operator Altice USA Inc , which is separating from telecoms and cable group Altice NV, reported a quarterly profit compared with a year-ago loss, benefiting from a $2.42 billion gain due to changes in the U.S. tax law.

Altice founder Patrick Drahi decided to split the U.S. and European operations of the heavily indebted telecoms and cable group into Altice USA and Altice Europe in January.

The Netherlands-based Altice NV expects to complete the spinoff of its 67.2 percent interest in Altice USA by the end of the second quarter of fiscal 2018, following regulatory and shareholder approvals.

Altice said it lost 25,000 pay-TV subscribers in the fourth quarter compared with 33,000 in the previous quarter.

Cable service providers has been facing subscriber attrition as more people opt for online video streaming services such as Netflix Inc and Amazon.com Inc's Amazon Prime video service.

Net income attributable to the company was $2.25 billion, or $3.06 per share, in the quarter ended Dec. 31, compared with a loss of $236.7 million, or 36 cents per share, a year earlier. Revenue for the company rose 2.6 percent to $2.37 billion. (Reporting by Muvija M in Bengaluru and Jessica Toonkel in New York; Editing by Arun Koyyur)