AT&T owns 33% of Cablevision. CVC's Rainbow programming is a partner with FSN and NBC has previously announced a rollout with ACTV in the SF Bay area.
Cablevision lost $167M in second quarter
Friday, August 13, 1999
Bloomberg News
Cablevision Systems Corp., the largest cable-television company in the New York metropolitan area, said its second-quarter loss grew as it spent more on new services like digital cable and fast Internet access.
Cablevision's loss was $167.8 million, or $1.10 a share, up from $122.9 million, or 82 cents, in the year-ago period. Revenue rose 18 percent to $946.3 million from $805.2 million.
Operating cash flow, which Cablevision defines as profit before depreciation and amortization and excluding the effects of a stock-option plan and year 2000 computer expenses, increased 12 percent to $254 million.
Cash flow is used by analysts to measure the performance of cable companies because it excludes non-cash charges and other expenses, focusing on the underlying operations.
Chairman Charles Dolan is building a sports and media empire by combining properties such as the New York Knicks and Rangers with his cable operations. He's also upgrading cable systems to offer an array of new digital services to subscribers.
The company's capital spending in the first half climbed 47 percent to $380.9 million as it rebuilt systems to offer new services -- like more channels, Internet access, and digital cable -- in the greater New York area.
Cablevision's shares fell 1/4 to 69 1/2.
Cablevision is closer to issuing shares that track the performance of its 75-percent owned Rainbow Media programming unit, which owns the American Movie Classics, and Bravo cable channels, said analysts who participated in a conference call with Cablevision on Thursday. Cablevision told analysts that it had received a preliminary approval from the Internal Revenue Service for a restructuring plan that would allow the company to eventually issue a tracking stock, or sell shares to the public.
Cablevision, like the other big cable companies, is betting that cable will be the main link for homes and offices to receive high-speed Internet connections, interactive television, and telephone service.
The Bethpage, N.Y.-based company ended the quarter with 3.4 million basic-cable subscribers, an increase of 2.7 percent over the year earlier period.
It's expected to start rolling out digital cable services later this year or early in 2000. It's been marketing a so-called advanced analog service called Optimum TV, which ended the quarter with about 596,000 customers, more than the 455,000 it had a year ago.
High-speed Internet access customers climbed to 22,256, a more than fivefold increase.
"It was a pretty good quarter over all," Eagan said. "Both on cable broadband and content they were pretty healthy."
Results are presented as if the purchase of 10 cable systems in New York and New Jersey from Tele-Communications Inc. and the sale of some cable systems and programming interests last year happened at the beginning of the year-ago period. They also reflect the purchase of some assets of consumer electronics stores from The Wiz Inc., as well as the purchases of Clearview Cinema Group Inc. and some theaters from Loews Cineplex Entertainment Corp.
Results of the year-ago period include a $141 million gain from the sale of programming interests and cable assets.
The company was expected to lose $1.14, according to a survey of four analysts by First Call Corp.
Copyright ¸ 1999 Bergen Record Corp.
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