Cablevision to Restate Results After $15m Accounting Errors

13 November 2003

US media firm Cablevision must restate its quarterly results for 2003 after a series of accounting errors.

The cable operator, which recently branched out into satellite TV, first uncovered book-keeping irregularities in June after a five-month internal inquiry into its Rainbow Media unit [WAMN: 20-Jun-03]. A subsequent -- and ongoing -- investigation of the group's entire business by law firm Wilmer, Cutler & Pickering has uncovered further problems.

Cablevision must now restate results for 2003 quarterly period 1-3 to include $15 million (€12.9m; £9.0m) in improperly booked expenses. Although the accounts probe is yet to conclude, the company expects to announce the revised results by the end of the month.

The conclusion of the investigation is vital if Cablevision is to gain regulatory approval for an IPO early next year. The group wants to spin off its satellite-TV business and a number of cable channels [WAMN: 27-Oct-03].

Its unrevised results for Q3 show a $104.6m net loss, wider than the $79.5m shortfall a year earlier. Revenues climbed 12% to $975.8m. As with Cablevision's Q2 results, however, auditor KPMG has refused to review these figures while the investigation continues.

Data sourced from: Financial Times; additional content by WARC staff