http://www.forbes.com/business/businesstech/feeds/ap/2004/08/09/ap1496596.html

Associated Press
Cablevision Falls to Second-Quarter Loss
08.09.2004, 11:47 AM

Cablevision Systems Corp. fell to a second-quarter loss despite higher revenue, as weakness in its satellite-television business hurt its bottom line.

The nation's sixth-largest cable-television company posted a net loss of $187.1 million, or 65 cents a share, for the latest quarter, compared with profit of $158.3 million, or 54 cents a share, in the same quarter a year earlier.

Analysts surveyed by Thomson First Call had expected a loss, excluding items, of 40 cents a share.

Bethpage-based Cablevision said it lost $30.8 million on investments, in the quarter, compared with gains of $150.7 million a year ago.

Revenue jumped 25 percent to $1.21 billion from $973.1 million.

Revenue from the telecommunications-services segment - which includes cable-television consumer services and Lightpath business services - rose 17 percent to $775.2 million, as operating income soared 76 percent to $109.9 million.

Revenue from programming division Rainbow Media's core networks - AMC, the Independent Film Channel, and Women's Entertainment - climbed 56 percent to $237.4 million. Operating income was up 44 percent to $70.7 million.

Satellite-TV service Voom posted an operating loss of $81.5 million, compared with a $3.6 million operating loss a year earlier. The company said it had 25,000 Voom customers as of June 30.

Cablevision said it has made progress on plans to spin off Voom and its core cable networks. The company said it expects to complete financing arrangements for the new entity soon.

Revenue from Madison Square Garden, the New York Knicks basketball team, the New York Rangers hockey team and Radio City Music Hall rose 24 percent to $165.8 million. Operating income for the segment came to $107.7 million compared with an operating loss of $9.3 million a year ago. The results included $106.1 million of payments and credits.

For the first six months of the year, Cablevision's revenue rose to $2.4 billion from $1.97 billion. The half-year net loss was $299.6 million, compared with a profit of $7 million in the same period last year.

Separately, Cablevision confirmed that Michael P. Huseby, the chief financial officer at cable rival Charter Communications Inc., will join Cablevision as CFO later this month.

Huseby, 49, succeeds Vice Chairman William J. Bell, 64, who will remain vice chairman through the end of the year before retiring.

In morning trading, shares of Cablevision dipped 30 cents, or 1.8 percent, to $16.84 on the New York Stock Exchange.

now you see what im saying about how expensive it is losing that time warner money and increasing team salary and luxury taxes. take away a one time credit[perhaps related to the put FOX held over MSG] and their take for the Q off MSG was one million bucks compared to losing 9.5mm last year. this company is bleeding and increasing costs isnt going to help.

The results included $106.1 million of payments and credits.

fishmike this is a one time credit that looks like it is associated with the FOX put option or a payment related to one time credit fee. i can go through their SEC filings and find out the real deal if you want, it's what ive done as a profession since college but take it from me, MSG made 1 mm dollars excluding that credit for the Q compared to a loss of 9.5mm last year.

now adding costs from salaries and luxury taxes and losing what would be 40mm per year from TW associated directly to mSG revenues is going to put them in a world of hurt. The only reason they are spending right now is because

A. they may not have any revenue from the Rangers next year and if so, they will ahve a reduced payroll
B. this is their main content source after losing the Mets. They are pumpimg money in so more TW issues dont hit them, but they still might. They are eager to keep as many fans eyed glued to this product as possible. This is likely why they don't want ANY negative press right now.

Posted by fishmike:

even if its a credit there will still be $$ prorated over the length of the deal. Also remember ESPN is doing the radio games and have significantly more $$$ the WFAN. I'm sure they are calculating some impart there.

Look, this arguement is silly because we are all speculating. I think we can all agree that at some point the cash flow will cap out because every market gets saturated. *IF* the Knicks are winning and have marketable players like they did in the 90s operating with a $70-$85m payroll means nada to them.

Exactly; I could see them using about $40 mil of their $76 mil over the next 2 years in expiring contracts to get good players and letting the rest of the contracts just expire, giving them a payroll around $75 mil. You can get a huge amount of talent with even $40 mil in expiring contracts. Or if they use all $41 mil of their expiring contracts to get a player like Kobe (I know Kobe's not an FA, but someone at his level) and another pretty good role player next summer, they alone will probably bring in more money than they cost. As long as they're getting players who bring in more money than they cost, MSG will keep doing the kinds of trades they did to get Marbury and Crawford. If the Knicks payroll doubled to over 200 mil but their revenue trippled, I'm sure Dolan would be extremely happy.

Bonn, I disagree because some players will have to be resigned (possibly at less) but others may be in rookie contracts. What if Sweetney is the next Zach Randoph and gives you 20/10 in 2 seasons from now? Well will represent a jump in payroll from $3mm to $10mm at the very least.

I think we have one more money deal we can make in the next 1-2 years. After that you have to pare down. There is a wall, and we are dangerously close... heck we are probably there now. 3 years is a long time away if your a fan, and thats why your looking at w/ Houston and Shandon.

MSG cannot double and triple their revenues. Do you understand that revenues comes from
A. ticket prices
b. cable either their own fees or liscense fees
C advertising


for the NY knicks to double and triple their revenues they would basically have to double what tickets costs cable fees etc.. and they cant--heck they already lost 40mm in fees from TW. this is basic stuff, I hope you can comprehend it.

you forgot merchandise... but who's saying they need to triple revenue?

Posted by BRIGGS:

MSG cannot double and triple their revenues.

OMG! I was E-X-A-G-G-E-R-A-T-I-N-G. The point is they'll continue to spend money if the players they spend money on bring in more than revenue than they cost the team.

Dude it clearly says MSG actually gave profit. And yes, I would like you to break the numbers down for me, I'v been asking you do it for months now, however you always convininiently ignore me. What is going to take for you to admit you are wrong?