Cablevision Sees Growth Across Segments


Cable operator Cablevision Systems recorded solid growth in the second quarter from Rainbow, MSG and its cable operations.

Cablevision’s consolidated net revenues grew 12.5% in the quarter to $1.57 billion from $1.396 billion in the second quarter of 2006. The telecommunications segment grew by 13% to $1.18 billion, of which $1.14 billion was contributed by cable television. The Rainbow programming division -- which includes AMC, The Independent Film Channel and WE tv -- rose by 12% to $222 million, while Madison Square Garden, which includes regional sports and events, grew by 12% to $182 million.

Consolidated operating income grew by 30.5% to $208 million from $159 million. Within the segments, telecommunications grew 7.6% to $218 million, Rainbow swung to $9.7 million income in Q2 from an $8.5 million loss a year ago and MSG recorded income of $14.2 million versus a $376,000 loss in 2006.

The company’s net income for the quarter was $317 million versus $14.6 million in the same period last year.

Cablevision reported consolidated adjusted operating cash flow of $508.5 million, representing growth of 10.4%.

The company’s customer relationships were essentially flat from last quarter at 3.319 million and are up 1.6% from the second quarter of 2006. Revenue-generating units grew 1.8% sequentially and 12% from Q2 2006. Optimum Voice rose 6% to 1.399 million from last quarter and 42% from last year. High-speed data was up 2.4% from Q1 and 15% from last year to 2.168 million. Digital video increased 1.6% and 12% respectively to 2.55 million. Basic video was flat quarter-to-quarter and up 1.2% from Q2 2006.

Cablevision revised some of its full-year 2007 guidance. The company now expects basic-video-subscriber growth to be flat versus 2006 rather than within the 1%-2% growth range previously estimated. RGUs were also revised lower from 850,000-950,000 to 825,000-900,000. Total revenue growth is expected in the 11% area versus the previously expected mid-teens, while operating cash flow growth is expected around 10% from mid-teens. Capital expenditures are expected to total near the low end of the previously released range of $600 million-$650 million.