Print this Article
RSSAssociated Press
By SETH SUTEL AP Business Writer
NEW YORK--Cablevision Systems Corp. reported Tuesday a narrower loss of $58.9 million (46.39 million) in the first quarter on higher earnings from its core cable TV business. Cablevision also owns Madison Square Garden, Radio City Music Hall and several cable networks.
The loss, which amounted to 21 cents per share for the three months ended March 31 compared with a net loss of $118.9 million, or 41 cents per share, in the same period a year ago. Revenues rose 16 percent to $1.41 billion (1.11 billion) from $1.21 billion.
On an operating basis, before interest payments, taxes, investment gains and losses and other factors, income rose 38 percent to $103.1 million (81.2 million). Cablevision's net income is greatly affected by interest payments on its debt, which is currently $11.4 billion (8.98 billion) following the payout of a special $3 billion (2.36 billion) dividend.
The gain in operating income was largely due to a 35 percent jump in profits from cable TV and telecommunications services. Cablevision has been aggressively signing up customers to premium offerings like high-speed Internet and phone service delivered over cable lines.
Cablevision also reported a gain of about 39,000 basic video customers, its eighth consecutive quarterly increase. Analysts watch this number closely to make sure cable companies aren't losing customers to rival satellite TV providers. Sanford C. Bernstein analyst Craig Moffett told clients in a note that he was "positively surprised yet again" by the strong results.
The company also reported gains of 112,000 high-speed Internet customers and 134,000 more digital phone customers in the quarter. Cablevision has seen strong results from marketing a "triple play" bundle of video, Internet and phone service.
Cablevision's cable networks unit, which includes AMC, IFC and WE, swung to an operating loss of $5 million (3.94 million) from a profit of $4.7 million in the year-ago period on higher programming and marketing costs for original material.
Madison Square Garden had a slightly wider operating loss of $12.3 million (9.69 million) due to several factors, including an NBA luxury tax and higher costs from professional hockey compared to last season when there was a lockout. Cablevision owns the New York Knicks NBA team and the NHL's New York Rangers.
___
On the Net:
