Cablevision Quarterly Profits Down, While MSG Rises With Sports, Media Gains
Cablevision reported “a drop in first-quarter profit, due in part to weaker cable earnings,” according to Ramachandran & Launder of the WALL STREET JOURNAL. CEO James Dolan also said he plans to stay in his operating role "at least through this year and beyond." Cablevision also disclosed that it was “exploring ‘strategic alternatives’ for its money-losing Clearview Cinemas business in its latest step to focus on its core cable business.” Profit fell 45% to $57.3M million from $104.04M "largely due to the absence of a contribution from its cable-networks division, which was spun off last year as AMC Networks Inc.” But earnings “were also affected by a lower contribution from its cable-TV business despite an increase in video subscribers” (WALL STREET JOURNAL, 5/4). In N.Y., Brian Stelter notes the earnings report comes as Dolan “is directing changes to the company’s cable and broadband service and making investments in hardware and software.” BTIG Research media analyst Richard Greenfield in a blog post wrote, “Jim Dolan hates to lose and clearly feels as though he has allowed Cablevision’s cable operations to fall behind by not taking the competitive threat to its business seriously enough” (N.Y. TIMES, 5/4).
GARDEN PARTY: The Madison Square Garden Company (MSG) reported a rise in Q3 revenues, primarily due to revenue increases at MSG Sports and MSG Media segments, but partially offset by a decrease in the MSG Entertainment segment. The $400.5M in revenue represents an increase of 21% from the year-ago period. MSG President & CEO Hank Ratner in a statement noted MSG Sports delivered its most profitable quarter in its two-year history as a public company (MSG).