Cablevision Reviewing Stock Option Grants

Aug 8, 2006  •  Post A Comment

Cablevision Systems Corp., the biggest cable-television provider in the New York area, delayed reporting second-quarter earnings because it is reviewing stock option grants from 1997 to 2002 and may have to restate results.

The company posted revenue gains in the quarter and increased its financial guidance for the rest of the year.

Consolidated net revenue rose 15.6 percent to $1.4 billion, Cablevision said in a statement Tuesday. Cable television revenue rose 17.9 percent to just over $1 billion while the company’s programming arm, Rainbow, increased sales 10.7 percent to $225.9 billion.

In its outlook for the rest of the year, Cablevision said it expected cable-television revenue growth to be in the high-teen percentages, up from the mid teens previously. The company said it expects its cable networks, AMC, IFC and WE, to show high single-digit growth, unchanged from previous guidance.

Cablevision’s report of higher revenue and the review of stock-option grants sent a mixed signal to Wall Street, analyst Douglas Shapiro of Bank of America said.

The financial data is “well above our estimates” but the disclosure of the options issue “clearly will create some uncertainty and probably put some pressure on the stock,” Shapiro wrote in a report.