Rev up, but so are losses from system-upgrade costs
Cablevision Systems Corp. announced Thursday that revenue for the second quarter rose 15% to $946 million and net losses widened to $168 million from $122 million.
The losses were due mainly to the company’s heavy investments for upgrading its New York cable systems and rolling out new services such as high-speed Internet access and telephony, the company said.
Total operating cash flow rose 12% to $254 million.
Revenue for cable, the company’s biggest business, and commercial telephony, rose 9% to $512 million. The two units saw cash flow rise 11% to $226 million.
Cable systems have 3.4 million subscribers, mostly in New York, Boston and Cleveland.
At Rainbow Media, Cablevisions programming and cable-channel subsid, revenue rose 20% to $290 million, with a notable 59% jump in revenue at Bravo to $18 million. Rainbow also controls American Movie Classics and a number of other cable channels, including Romance Classics, the Independent Film Channel and the new regional MetroChannels.
Rainbow also houses Cablevision’s interests in regional Fox Sports networks around the U.S.
Get back to the Garden
Revenue at Madison Square Garden subsid, home to the MSG Network, Fox Sports New York, the Knicks, the Rangers and Radio City Music Hall, rose 15% to $176 million.
Cablevision, which has been amassing sports and entertainment properties in New York City and surrounding areas, also owns the Wiz retail electronics chain and a group of local movie theaters. The theaters, comprising the Clearview Cinema group and some properties purchased from Loews Cineplex Entertainment, posted revenues of $21 million.