NOVEMBER 3, 2009, 10:33 A.M. ET Cablevision's Net Triples; MSG to Be Spun Off by Year-End
By NATHAN BECKER Wall Street Journal http://online.wsj.com/article/SB10001424052748703740004574513271962658440.html Cablevision Systems Corp.'s third-quarter profit more than tripled, beating analysts' estimates, fueled by sales growth across several key businesses. Cablevision also said it was moving forward with its plan to spin off its Madison Square Garden entertainment business and it is "on track to complete the transaction by year-end." Cable companies have seen a cutback in consumer spending and increased competition from expanding telecommunications companies such as Verizon Communications Inc. and AT&T Inc., but they have boosted revenue by adding Internet service and voice customers. Last week, Cablevision said it will raise rates for cable TV service by an average of 3.7% for 2010. Cablevision reported earnings of $98.9 million, or 33 cents a share, up from $30.9 million, or 10 cents, a year earlier. Revenue jumped 5.3% to $1.84 billion. Analysts polled by Thomson Reuters had most recently forecast earnings of 26 cents on $1.82 billion in sales. At the company's telecommunications business -- by far its largest -- revenue jumped 4.9% and earnings jumped 25%. Basic video subscribers fell 1.5% from a year earlier, and Optimum Online high-speed data customers grew 3.9%. Optimum voice customers grew 9.7%. The company's MSG entertainment business swung to a $12.3 million profit. The company will spin off the business, which includes Madison Square Garden and the New York Knicks and New York Rangers, to return focus to its core operations. ================================================= George Antunes Voice (713) 743-3923 Associate Professor Fax (713) 743-3927 Political Science Internet: antunes at uh dot edu University of Houston Houston, TX 77204-3011 *********************************** * POST TO [email protected] * *********************************** Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
