From this am's press release (earnings for CVC) & Info about VOOM

[rang1995]

from this am's press release (earnings for CVC)

seems all the customers are here..
things will grow i hope..
Rainbow DBS - VOOM

On October 15, 2003, Cablevision's Rainbow DBS initiated the first satellite transmission of "VOOM", a new service oriented to HDTV viewing. For the fourth quarter, the satellite services division reported an operating loss of $54.9 million compared to an operating loss of $1.8 million in the year-earlier period. The AOCF deficit for the quarter was $47.7 million compared to $1.8 million in the year-earlier period. The operating loss and AOCF deficit were attributable to costs associated with the launch of the VOOM service including marketing, administration, high definition channel development and systems integration expenses. These costs were not offset by any revenues.

While affiliation arrangements for syndicated programming are being completed, and while various technical problems are being resolved, the company has limited its marketing program. (As of the end of February, 1,627 customers were installed and receiving service. No customers have yet been billed for service.) With the recent completion of significant programming arrangements, and improved technical performance, the company is now undertaking a measured increase in its marketing efforts and is testing a variety of pricing alternatives.

 

[Scott Greczkowski]

The operating loss and AOCF deficit were attributable to costs associated with the launch of the VOOM service including marketing, administration, high definition channel development and systems integration expenses. These costs were not offset by any revenues.

This says a lot.

VOOM has not collected a nickle from any subscriber yet. Now many would think that's bad, however I feel that VOOM is grooming itself into something the customers want. While there has been some initial fustration from VOOM customers, it appears to me that VOOM is doing its best to make itself the best it can be to all it's customers.

From where I sit I can see some positive light coming from VOOM.

As soon as I receive my call back from Jeff at VOOM I will be a VOOM customer.

 

[rang1995]

Dow Jones Business News
Cablevision Sees Satellite Spin-Off Later This Year
Tuesday March 2, 1:52 pm ET
By Ellen Sheng, Of DOW JONES NEWSWIRES


NEW YORK (Dow Jones)--Cablevision Systems Corp. (NYSE:CVC - News) Tuesday said its audit will be completed in a few weeks and reiterated its plans to spin off Rainbow DBS later this year.
ADVERTISEMENT


Speaking on a conference call with Wall Street analysts, Chief Executive Jim Dolan said he still expects to file paperwork for the spin-off in the second quarter.

Plans for the spin-off have been held up by an accounting investigation. Since June, Cablevision, the country's sixth largest cable operator, has been undergoing an audit led by the law firm Wilmer Cutler Pickering. The Bethpage, N.Y., company said Tuesday the audit is expected to wrap up before Cablevision files its 10-K for 2003 on March 15.

Meanwhile, investigations by the Securities and Exchange Commission (News - Websites) and the U.S. Attorney's Office are continuing.

Cablevision announced last year its intention to spin off Voom, its new satellite TV business, along with some of its programming assets, including American Movies Channel, Independent Film Channel and Women's Entertainment Network. That plan was approved by the company's board of directors in October.

Cablevision executives ventured to discuss forecasts for various company businesses for the year ahead, but said it was "too early yet" to forecast revenue from Voom.

A company executive said more details would be disclosed after the company files its spin-off paperwork or spins off the company.

Vice Chairman Bill Bell said he remains "highly confident" the company will be able to put together financing for the satellite business. "The financing market is very, very good at this particular stage," Bell said.

Cablevision has promised to restrict its investment in Voom. The plan to spin off Voom along with Cablevision's three prized cable networks is intended to help make the new company self-funding.

Voom has signed up 1,627 customers since its launch in October. The unit reported an operating loss of $54.9 million during the fourth quarter but no revenue since it had not yet started charging customers.

Quadrangle Capital Partners decided in October to exercise its put option and withdraw a $75 million investment - pointing to the investing group's disapproval of Cablevision's spin-off plan. Cablevision said Tuesday it is still in discussions with the group about the amount and method by which to repay the group.

Cablevision reported $17 million in bonuses for employees in the telecom division and another $17 million in corporate bonuses. Executives said the bonuses were "sort of a catch-up" since the company had suspended bonus pay for two years.

In a separate issue, Cablevision declined to discuss its ongoing arbitration with YES Network, other than to say the talks should be completed before the start of the Yankees' season. YES and Cablevision struck a deal hours before the first baseball game in March but have yet to come up with a more long-term agreement.

Cablevision posted a larger-than-expected fourth-quarter net loss of $197.4 million, or 69 cents a share, dragged by costs of launching Voom, the company's new satellite TV business.

The results fell below Wall Street's estimate of a 45 cents-a-share loss. A year ago, the company reported net income of $529.8 million, or $1.66 a diluted share.

Revenue for the three-month period ended Dec. 31 was $1.2 billion, up from $ 1.1 billion a year ago.

For the year ahead, the cable company said revenue from its telecommunications business, which makes up more than half of total revenue, would increase between 12% and 14%. The basic video subscriber base is expected to grow 0.5%.

 

[Geno]

Not good VOOM news ....

Got this from the Yahoo group.

Uugh. It sounds bad....

--------------------
Cablevision Posts Loss on Satellite Startup
--------------------

By Harry Berkowitz
Staff Writer

March 2, 2004, 4:25 PM EST

Hampered by technical problems and programming gaps, the Voom satellite-television service that Cablevision Systems Corp. launched nationally in October has signed up only 1,627 customers and contributed to a $197 million net loss for the fourth quarter, the company said Tuesday.

As part of an accounting probe, Cablevision also announced a new round of possible financial restatements because of mistakes dating back to 1999 -- ranging from improperly recorded marketing payments from programmers to incorrectly stated stock market profits.

The 2003 quarterly loss, which also reflected the resumption of long-suspended management bonuses at Cablevision and continuing financial woes at the Madison Square Garden division, was in contrast to a profit of $530 million in the period a year earlier, when the company benefited from its sale of the Bravo cable channel to NBC.

And the slow start for the satellite service was in contrast to a fast kickoff for the $34.95-per-month residential telephone service Cablevision launched in September using Internet technology. Optimum Voice signed up nearly 29,000 customers by the end of the year and was adding 2,500 customers per week.

Both Voom and Optimum Voice are ambitious new ventures for Cablevision but are expected to take very different paths.

Cablevision plans to file regulatory documents in April to spin off Voom, along with AMC and two other cable TV networks, as a separate company with its own stock and Cablevision founder Charles Dolan as chairman. But first it must wait for the Securities and Exchange Commission to complete an investigation into improper accounting at the channels. But analysts say prospects are dim for Voom, which is trying to compete with DirecTV and the Dish Network from EchoStar Communications.

Voom, which was planning to charge subscribers $749 for installation and equipment and $39.90 per month for a basic package of channels including 39 in high-definition, is testing various "pricing alternatives" and beginning a "measured increase" in marketing, including TV commercials, as it adds more programming and improves technical performance, the company said. Voom posted an operating loss of $55 million in the fourth quarter. Among the new options are for customers to lease rather than buy the set-top box.

The company said Wilmer Cutler Pickering, the law firm hired by the board of directors to head the accounting probe that led to the firing of 14 employees last June, expects to complete its investigation - including recommended accounting improvements -- in time for Cablevision to file its annual 10K financial report by March 15.

Cablevision said KPMG expects to complete its audit of the figures.

In addition to previous restatements of financial results related to the probe, Cablevision said it has corrected mistakes that overstated operating income by $18.6 million in 2001, $4.1 million in 2002 and $7.6 million for the first nine months of 2003, and understated it by $5.4 million in 2000.

For the fourth quarter of 2003, Cablevision posted an operating loss of $46 million, compared with operating income of $71 million a year earlier, while revenue rose 12 percent to $1.2 billion, helped by a 20-percent jump during the quarter in digital iO customers to 905,495 and a 7 percent gain in Optimum Online high-speed Internet customers to 1.06 million. Overall cable customers, however, slipped in the quarter by 11,400 to 2.94 million, down 19,600 for the full year, largely because an upgrade of cable systems in Brooklyn and the Bronx fell five months behind schedule. Cablevision said it expects the number of subscribers to rise a half-percent this year, revenue to gain between 12 and 14 percent and adjusted operating cash flow to increase between 13 and 15 percent.

At Madison Square Garden, which includes the struggling New York Knicks and Rangers and which laid off 80 employees last month, operating income plunged 43 percent to $11.4 million in the quarter, reflecting higher team player costs, the National Basketball Association "luxury tax" for high payrolls, and higher development costs for shows such as the Radio City Christmas Specatacular, which had a strong season.

Cablevision shares closed down 91 cents, or 3.5 percent, at $25.33, in New York Stock Exchange trading Tuesday.

Copyright (c) 2004, Newsday, Inc.

--------------------

This article originally appeared at:
http://www.newsday.com/business/ny-biz-cablevision0302,0,4316240.story?coll=ny-business-headlines

Visit Newsday online at http://www.newsday.com

 

[rollerfink]

I don't think that's a big deal. I'm sure they weren't planning on making a profit in the short term and must have projected massive losses due to tech development and marketing that is associated with launching something like Voom.

Voom may fail or it may succeed but I think it's too early to guess either way.

 

[Sean Mota]

Will merge to Stick topic on top...