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Cablevision Loss Expands, Rainbow Performs

Nov 8, 2007  •  Post A Comment

Cablevision Systems posted a bigger third-quarter loss and the cable company said subscriber growth for its video, high-speed Internet and phone services would slow for the rest of the year.
Revenue rose 9.4 % to $1.5 billion. For the quarter, Cablevision’s net loss totaled $79.3 million, or 27 cents a share, compared to a loss of $59.2 million, or 22 cents a share, a year earlier, when the company had a gain on investments and a larger tax benefit.
The Rainbow Media unit helped results as advertising sales rose 22% at cable networks AMC, WE and IFC. That contributed to a 13.8% increase in revenue at the business, while operating income rose 18.4% to $61.2 million.
The company adjusted its forecast for the full year, saying the net addition of revenue generating units would be about 800,000 for the year, down from the previous estimate of between 825,000 and 900,000. It also said adjusted operating cash flow growth would be 9%, down from 10%. Other aspects of its forecast were unchanged.
Craig Moffett, analyst at Sanford Bernstein, said the numbers indicated Cablevision was being hurt less than expected by competition from Verizon’s FiOS services, which overlaps about 25% of Cablevision’s territory.
Cablevision also said it had terminated an agreement with its founding Dolan family to take the company private. Shareholders voted down the proposal on Oct. 24.
(Editor: Baumann)

8 Comments

  1. Cablevisions operating losses have more to do with the pricing structure of it’s packages. If cablevision established alacarte pricing, which the FCC is in it’s open comment period, they would see a net increase in revenue. Another aspect of the losses is occuring due to legal expenses defending itself in it’s hiring practices. Cablevision is a leader in new technology it’s a shame the company is under it’s curent management.

  2. Cablevisions operating losses have more to do with the pricing structure of it’s packages. If cablevision established alacarte pricing, which the FCC is in it’s open comment period, they would see a net increase in revenue. Another aspect of the losses is occuring due to legal expenses defending itself in it’s hiring practices. Cablevision is a leader in new technology it’s a shame the company is under it’s curent management.

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