Cablevision Systems Corp. recorded higher second-quarter profits thanks to an asset sale, but the company said it was reducing its revenue and profit estimates for 2007.
The New York-based cable TV provider, which will be taken private by the Dolan family in a $22 billion deal, said it earned $317.4 million, up from $14.6 million during the same period a year ago. Cablevision said earnings shot up because it sold stakes in two regional sports channels in June. Cablevision sloughed off FSN Bay Area and FSN New England for $570 million.
Excluding that gain, Cablevision¡¯s operating income grew 30 percent to $208.4 million, up from $159.7 million a year ago. Revenue increased by 12.3 percent, reaching $1.57 billion ¨C that¡¯s up from $1.4 billion during the second quarter of 2006.
That was good news, but Cablevision ¨C which owns Radio City Music Hall, Madison Square Garden and two New York sports teams ¨C revised its revenue growth for 2007 to 11 percent. The company said competition was impeding its previous forecast for percentage growth in the mid-teens. Cablevision is up against Verizon Communications Inc., which has been targeting Cablevision¡¯s territory with its FiOS TV and Internet product.