MSG Networks Inc. (MSGN) has reported a 27.55 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $43.26 million, or $0.57 a share in the quarter, compared with $33.91 million, or $0.45 a share for the same period last year.
Revenue during the quarter grew 3.36 percent to $175.65 million from $169.93 million in the previous year period. Total expenses were 54.57 percent of quarterly revenues, down from 57.09 percent for the same period last year. This has led to an improvement of 252 basis points in operating margin to 45.43 percent.
Operating income for the quarter was $79.80 million, compared with $72.92 million in the previous year period.
However, the adjusted operating income for the quarter stood at $85.65 million compared to $78.67 million in the prior year period.
Andrea Greenberg president and chief executive officer said, "For the fiscal second quarter, we delivered solid year-over-year increases in revenues and adjusted operating income. As we continue to experience growth in our core business, we are also pursuing opportunities for incremental growth, including new branded content partnerships and new distribution avenues for our programming. We look forward to a strong second half of fiscal 2017 and believe we are well positioned to continue generating meaningful value for our shareholders."
Operating cash flow declines
MSG Networks Inc. has generated cash of $101.02 million from operating activities during the first half, down 15.01 percent or $17.84 million, when compared with the last year period.
The company has spent $2.24 million cash to meet investing activities during the first six months as against cash outgo of $1.95 million in the last year period.
The company has spent $32.25 million cash to carry out financing activities during the first six months as against cash outgo of $33.58 million in the last year period.
Cash and cash equivalents stood at $185.14 million as on Dec. 31, 2016, down 22.15 percent or $52.69 million from $237.83 million on Dec. 31, 2015.
Working capital increases sharply
MSG Networks Inc. has recorded an increase in the working capital over the last year. It stood at $217.25 million as at Dec. 31, 2016, up 110.14 percent or $113.87 million from $103.38 million on Dec. 31, 2015. Current ratio was at 2.89 as on Dec. 31, 2016, up from 1.37 on Dec. 31, 2015.
Days sales outstanding went down to 57 days for the quarter compared with 63 days for the same period last year.
Debt comes down
MSG Networks Inc. has recorded a decline in total debt over the last one year. It stood at $1,449.05 million as on Dec. 31, 2016, down 5.77 percent or $88.66 million from $1,537.72 million on Dec. 31, 2015. Total debt was 169.66 percent of total assets as on Dec. 31, 2016, compared with 168.80 percent on Dec. 31, 2015. Interest coverage ratio improved to 8.80 for the quarter from 7.96 for the same period last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
