Cablevision profits jump on asset sale 2 hours, 1 minute ago

Cablevision profits jump on asset sale 2 hours, 1 minute ago



NEW YORK - Cablevision Systems Corp., a New York-area cable TV provider, reported higher profits Wednesday following an asset sale, but lowered its full-year revenue and profit estimates.

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Cablevision, which has 3 million cable subscribers in the New York area and owns Radio City Music Hall, Madison Square Garden, earned $317.4 million in the three months ending in June, compared with $14.6 million in the same period a year ago. Per-share earnings rose to $1.08 from 5 cents.

The results were boosted by the sale in June of Cablevision's stakes in two regional sports cable channels, FSN Bay Area and FSN New England for a total purchase price of $570 million.

Excluding the gain, operating income rose 30 percent to $208.4 million from $159.7 million.

Cablevision's rose 14 cents to $33.86 in morning trading Wednesday.

Revenues rose 12.3 percent to $1.57 billion from $1.4 billion in the same period a year ago.

Looking ahead, the company, which also owns the New York Knicks basketball team and the New York Rangers hockey team, said it now sees total revenue growth for 2007 of 11 percent, compared with its prior forecast for mid-teen percentage growth, citing a "competitive environment."

In addition to competition from satellite TV providers, Cablevision's territory is being targeted by Verizon Communications Inc. for a new TV and high-speed Internet service called FiOS, which is delivered over fiber-optic cables.

Cablevision, based in Bethpage, on New York's Long Island, also said it sees adjusted operating cash flow growth of 10 percent for the year, versus its previous estimate of mid-teens growth.

The company lowered its expectations for basic video subscriber additions, saying they would now likely be flat for the year versus its previous estimate of 1 percent to 2 percent growth.

Cablevision has agreed to be taken private by its controlling shareholders, the Dolan family, for $36.26 a share. The next step in the process is to schedule a shareholder vote on the deal, which must be approved by a majority of the non-Dolan family public shareholders.