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JesseDark
Posts: 22827
Alba Posts: 0
Joined: 9/9/2003
Member: #467
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Overall Cablevison netted 6.6 mill in the 4th quarter. Dolan doesn't see a problem (sigh).
February 29, 2008
Cablevision Reports a Profit, and Its Shares Rise
By REUTERS
The Cablevision Systems Corporation, the cable TV operator, posted a quarterly profit Thursday, rebounding from a loss in the period a year ago, as it pulled in more subscribers for online and voice services.
Shares in the cable television operator, based in Bethpage, N.Y., rose $1, to $27.90. The increase in subscribers comes amid stronger competition from Verizon Communications Inc., which is marketing its FiOS advanced digital TV and high-speed Internet service.
Cablevision Systems in the fourth quarter “was largely ahead of expectations, especially at the cable TV division, which has been the focal point for incremental competition from Verizon,” an analyst at Miller Tabak said in a research report.
The company reported fourth-quarter net income of $6.6 million, or 2 cents a share, in contrast with a loss of $23.9 million, or 8 cents a share, in the period a year earlier.
Revenue rose 10.8 percent, to $1.84 billion, surpassing analysts’ average estimate of $1.8 billion, according to Reuters Estimates.
Basic video customer additions reached 1,000 in the quarter and digital video additions were 43,000. It signed up 62,000 high-speed Internet customers and 102,000 phone customers.
“That Cablevision reported positive basic subscribers is a remarkable feat given the extensive overlap with Verizon’s FiOS,” an analyst at Sanford C. Bernstein, Craig Moffett, wrote in a report.
“While a positive subscriber result had been widely rumored during the quarter,” Mr. Moffett wrote, “it nevertheless represents a clear positive surprise versus expectations, which have been persistently bearish in terms of long-term subscriber retention.”
In Cablevision’s telecommunications unit, which includes its main businesses of cable, Internet and phone services, fourth-quarter net revenue increased about 8.7 percent, to $1.22 billion.
It added 208,000 revenue-generating units — the industry standard for new services sold to customers — including new basic and digital video, high-speed data and voice units, during the quarter.
Cablevision also owns major sports teams and concert halls, including Radio City Music Hall, the New York Knicks basketball team and the New York Rangers ice hockey team. Madison Square Garden’s fourth-quarter net revenue rose 18.3 percent, to $402 million.
Shareholders in September rejected a $10.6 billion buyout bid from the Dolan family, which owns a controlling interest in the company. Major shareholders said the bid undervalued the company.
Now, there is speculation that the Dolan family could be interested in selling Cablevision’s Rainbow Media division, which includes cable networks like AMC and IFC.
Cablevision executives declined to comment on the reports.
Bring back dee-fense
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