DOW JONES NEWSWIRES

Cablevision Systems Corp. (CVC) posted a 69% decline in second-quarter net income amid acquisitions that include the Sundance Channel and Newsday, the Long Island newspaper previously owned by Tribune Co.

The cable television firm - which also owns the New York Knicks and the New York Rangers - reported net income of $98.3 million, or 33 cents a share, down from $317.4 million, or $1.08 a share, a year ago. Income from continuing operations fell to 34 cents from 43 cents.

Revenue climbed to $1.71 billion from $1.57 billion.

The mean estimates of analysts polled by Thomson Reuters were for per-share earnings of 13 cents on revenue of $1.68 billion.

Cablevision shares rose to $22 in premarket trading from a previous close of $ 21.25.

In the Madison Square Garden business, which includes the sports teams, revenue rose 9.2%, while operating income fell 8.6%.

At Cablevision's telecommunications business - by far the company's largest - revenue jumped 9.2% amid 33% earnings growth. Operating income at Optimum Lightpath-branded commercial data and voice services swung to a profit amid a 20% increase in revenue. Cable TV revenue climbed 9%, while operating income rose 30%. Subscribership grew across the board.

Cablevision has been among the most successful cable companies at expanding beyond TV service to sell high-speed Internet and telephone subscriptions. Still, its cable business has been beset by Verizon Communications Inc.'s (VZ) FiOS TV service, which is now available in most Cablevision markets.

The company's Rainbow unit - which includes channels such as AMC, IFC and News 12 - saw revenue up 15%, with operating income more than doubling.

In the past few months, Cablevision has unnerved investors by going on a wide- ranging treasure hunt for potential acquisitions. Investors have said the stock is afflicted by the "Dolan discount," a reference to the Dolan family, the company's controlling shareholder. They fret that Chief Executive James Dolan plans to spend Cablevision's cash in ways that don't necessarily help the company.

In May, the company beat News Corp. (NWS, NWSA) - the owner of Dow Jones & Co., publisher of this newswire - with a $650 million bid to buy Newsday, which has been struggling amid rapidly worsening ad conditions in the newspaper industry. Cablevision has deep roots in Long Island and hopes to benefit from the overlap of newspaper subscribers with Cablevision customers, though many analysts saw little value to such a deal. The deal closed Tuesday.

Last month, Cablevision also closed its purchase of the Sundance Channel in a cash-and-stock deal initially valued at $496 million. The deal is expected to strengthen the position Cablevision already has in the independent-film programming arena with its IFC channel.

-By Shara Tibken, Dow Jones Newswires; 201-938-2168; shara.tibken@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=%2B%2B0A4EKn7ZlAi6szOQUadw%3D%3D. You can use this link on the day this article is published and the following day.

  (END) Dow Jones Newswires
  07-31-08 0908ET
  Copyright (c) 2008 Dow Jones & Company, Inc.