Shares fall victim to stock market conditions
Cablevision swung to profit in a strong third quarter, but its shares still got hammered on another tough day for the stock market.
The Gotham cable and live entertainment company posted net profit of $27.1 million, compared with a loss of $79.3 million in the year-ago frame.
Due to ongoing market conditions, execs said they have suspended plans, announced over the summer, to explore ways of boosting the stock price via an acquisition or another strategic change to Cablevision’s holdings. Asset sales or stock buybacks are still possible, however.
Total revenue gained 15% to $1.7 billion, with the acquisitions of Newsday and the Sundance Channel providing a boost. Rainbow, the programming unit that owns AMC, Sundance, IFC and other channels, recorded a 21% surge in revenues to $251.4 million.
Operating income for the core cable, voice and Web services unit rose 33% to $281.2 million on growth in digital, voice and Web subscribers and higher rates.
Despite the healthy results, company shares closed down 4.3% to $16.20 amid an overall selloff in the stock market.