Cablevision crunch

Disappointing Q2 earnings drop stock

Cablevision Systems Corp. gave up $2.06 a share to close at $83.38 Tuesday after the Woodbury, N.Y., cabler fell 5% short of second-quarter earnings expectations.

Although Cablevision narrowed its net loss 5% to $123 million in the quarter ended June 30, a consensus among analysts pegged that figure at $117 million.

Revenues, meanwhile, soared 83.6% to $805 million.

Operating cash flow, or operating profit before depreciation and amortization, increased 54.9% to $221.7 million for the hyperactive cabler, which since the year-earlier period has acquired 10 cable television systems in New York and New Jersey from Tele-Communications Inc.

Acquisitions included

Cablevision said the results also include the acquisition of Radio City Productions and A-R Cable Services, as well as additional interests in Madison Square Garden L.P., A-R Cable Partners and Cablevision of Framingham Holdings.

Once Cablevision’s base period is adjusted to encompass these and other transactions, the company’s operating cash flow rose a more modest 13.4% on a 14.7% revenues gain.

Not included in the results were contributions from recently acquired electronic retailer Nobody Beats the Wiz and Cablevision’s deal-in-progress to buy cable systems in Hartford, Vernon, Branford and Lakeville, Conn., for 2.9 million newly issued shares and $135 million in cash and assumed debt.

As for Cablevision’s core business, subscriptions gained 2.8% over the year to total 3.4 million cable customers, concentrated in New York, Boston and Cleveland.

Each subscriber paid an average of $42.24 in June 1998 — 7.8% more than a year ago.

Cable reps 10.4% increase

Cable’s $468.8 million contribution to Cablevision’s total sales represented a 10.4% increase, and its $202.4 million contribution to operating cash flow represented a 13.5% increase.

The company’s other major operation, Rainbow Media Holdings, owns 50% of Fox Sports Net and manages news, entertainment and sports programming. Its $246.2 million contribution to sales represented 16.8% increase, and its $28.8 million contribution to operating cash flow represented a 7.8% increase.

James L. Dolan, the cabler’s CEO, said the report “reaffirms the strength of our core cable clusters and the promise of our new and existing businesses.”

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading