Cablevision Systems Reports Third Quarter 2009 Financial Results

Cablevision Systems has reported financial results for the third quarter ended September 30.

In a November 3 release, Cablevision reported that third quarter consolidated net revenues grew 5.3 percent to $1.840 billion compared to the prior year period, reflecting solid revenue growth in Telecommunications Services and Rainbow.

Consolidated adjusted operating cash flow ("AOCF") 1 increased 14.7 percent to $667.7 million and consolidated operating income grew 32.2 percent to $381.6 million, both compared to the prior year period. Third quarter 2009 AOCF and operating income include favorable adjustments of $25.7 million relating to the resolution of regulatory and legal matters at Cable. Excluding the impact of these items, the growth in AOCF and operating income would have been 10.3 percent and 23.3 percent, respectively.

Operating highlights for the third quarter 2009 include:

-Year-to-date Consolidated Free Cash Flow from Continuing Operations1 of $623.0 million

-Cable Television net revenue growth of 4.5 percent and AOCF growth of 7.3 percent (excluding adjustments) for the quarter

-Rainbow AOCF growth of 37.8 percent for the quarter compared to prior year period

-Madison Square Garden AOCF growth of 151.5 percent for the quarter compared to prior year period

-Average Monthly Revenue per Basic Video Customer ("RPS") of $141.03 in the third quarter of 2009

Telecommunications Services includes Cable Television - Cablevision's "Optimum" branded video, high-speed data, and voice residential and commercial services offered over its cable infrastructure -- and its "Optimum Lightpath" branded commercial data and voice services.

Telecommunications Services net revenues for the third quarter 2009 rose 4.9 percent to $1.362 billion, AOCF grew 12.6 percent to $575.0 million and operating income increased 25.3 percent to $354.3 million, all compared to the prior year period. Third quarter 2009 AOCF and operating income include favorable adjustments of $25.7 million relating to the resolution of regulatory and legal matters. Excluding the impact of these items, the growth in AOCF and operating income would have been 7.5 percent and 16.2 percent, respectively.

Cable Television third quarter 2009 net revenues increased 4.5 percent to $1.303 billion, AOCF rose 12.5 percent to $550.9 million and operating income increased 24.5 percent to $350.2 million, each compared to the prior year period. The increases in net revenues, AOCF and operating income were principally driven by the growth in digital video, high-speed data, and voice customers as well as higher rates reflected in third quarter 2009 results. Third quarter 2009 AOCF and operating income include the impact of the items discussed above. Excluding these items, the growth in AOCF and operating income would have been 7.3 percent and 15.4 percent, respectively.

For third quarter 2009, Lightpath net revenues increased 3.8 percent to $65.1 million, AOCF increased 14.5 percent to $24.1 million and operating income improved $2.5 million to $4.1 million, each as compared to the prior year period. The improved results were due principally to the continued expansion of the more efficient, higher margin Ethernet business and include the impact of the acquisition of 4Connections in October 2008.

Rainbow consists of the Rainbow National Services ("RNS") - AMC, WE tv and IFC - as well as Other Programming which includes: Sundance (effective June 16, 2008), News 12 Networks, VOOM HD (domestic programming discontinued in January 2009), IFC Entertainment, Rainbow Network Communications, Rainbow Advertising Sales Corp. and other Rainbow ventures.

Rainbow net revenues for the third quarter of 2009 increased 3.5 percent to $260.1 million, AOCF rose 37.8 percent to $86.0 million, and operating income grew 82.7 percent to $53.5 million, all compared to the prior year period.

Third quarter 2009 net revenues grew 11.4 percent to $206.2 million, AOCF increased 17.1 percent to $95.9 million and operating income grew 23.2 percent to $79.2 million, each compared to the prior year period.

Third quarter 2009 net revenues decreased 17.2 percent to $60.2 million, AOCF improved 49.3 percent to a deficit of $9.8 million and operating loss improved 26.4 percent to a loss of $25.8 million, all as compared to the prior year period. The revenue decline was primarily the result of the discontinuation of the domestic programming business at VOOM HD and the sale of our VOD services (Lifeskool and sportskool) in the 2009 results. The improvement to the AOCF deficit and operating loss was primarily due to cost savings related to VOOM HD as well as improved results at Sundance.

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