NEW YORK — Shares of Cablevision Systems jumped Friday after the company reaffirmed full-year cash projections for most of its divisions and announced plans to hold an investor meeting Aug. 8.
The shares, which have been battered by financial scandals at Adelphia Communications, another large, family-run cable company, closed up 16% at $6.75. They were trading close to $60 a year ago.
Woodbury, N.Y.-based Cablevision said it will address capital spending plans and its cash situation (it could face a funding crunch next year) and review its second quarter financial results at the Gotham meeting.
“In this time when corporate credibility has been called into question, we welcome the opportunity to communicate face-to-face with the investment community, answer questions and review our plans,” Cablevision prexy-CEO James Dolan said.
The company said it lost, respectively, 7,000 and 10,000 basic cable subscribers in the first and second quarters of this year
It ended the first half with just under 3 million basic cable subs. A chunk of the losses are due to a spat with the YES Network over rights to televise New York Yankees baseball games.
Cablevision said it added 2,200 subs in June.
The company, which owns Madison Square Garden, Radio City Music Hall and Rainbow Media and a handful of other Gotham-based assets like Clearview Cinemas and electronics retailer the Wiz, which may be on the block, insisted that it has no plans to restate earnings from prior reporting periods.
Rainbow Media, like other owners of cable networks, has had to take bad debt provisions following the meltdown and bankruptcy of Adelphia, the nation’s sixth-largest cable operator. Three members of that company’s founding Rigas family and two other execs were arrested last week, sending tremors through the cable industry.
Cablevision said Dolan and vice-chairman Bill Bell will certify all financial results under new guidelines imposed by the SEC.