Cablevision moves to distance itself from Adelphia, Wachovia analyst says others should too

By Ronda Fears

Nashville, Tenn., June 11 - Cablevision Systems' move to distance itself from the type of problems at Adelphia is something other cable companies need to do, said Wachovia Securities convertible analyst Sri Nadesan.

Late Monday, Cablevision said it does not receive any marketing support payments from its set-top box vendors and that it does not capitalize any costs for reconnecting or disconnecting customers, whereas it does capitalize the "appropriate portion" of the costs related to new cable and new modem subscriber installations.

Cablevision also said it does not have any undisclosed management fee arrangements with any related parties, does not recognize revenue for free months of subscriber services and does not extrapolate any data related to the company's subscriber count.

On the issue of revenue received from interactive cable and Web-based services, Cablevision said it recognized less than $1 million annually as non-cash revenue for providing advertising services to these companies.

The cable sector has been punished hard lately due to the troubles at Adelphia.

On Tuesday, Cablevision shares declined 24c to $14.15.

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