Operating cash flow is a widely watched indicator for media companies that excludes depreciation and amortization costs and other one-time expenses. Cash flow for the company's cable operations rose 8 percent, on a 5 percent increase in revenues. The company expects its Cablevision NY Group, which comprises cable systems, telephone businesses, high-speed Internet business, The Wiz consumer electronics retail chain, the sports teams and other assets, to post a 13 percent to 15 percent increase in cash flow for 2001 on a 10 percent to 12 percent revenue increase. The company expects its MSG unit, which includes the Madison Square Garden arena and the sports teams, to be hurt by the failure of the Rangers to make the National Hockey League playoffs and the first-round elimination of the Knicks from the National Basketball Association playoffs. The stock was punished last quarter as the company was seen lagging its competitors in upgrading its cable systems.
Digital cable compresses television signals to allow many more channels.
Rainbow Media began trading as a tracking stock this year.