MSG Networks Inc. (MSGN) has reported 1.15 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $44.16 million, or $0.58 a share in the quarter, compared with $44.67 million, or $0.59 a share for the same period last year.
Revenue during the quarter went up marginally by 2.03 percent to $183.25 million from $179.60 million in the previous year period. Total expenses were 54.68 percent of quarterly revenues, up from 53.18 percent for the same period last year. That has resulted in a contraction of 150 basis points in operating margin to 45.32 percent.
Operating income for the quarter was $83.05 million, compared with $84.09 million in the previous year period.
However, the adjusted operating income for the quarter was almost stable at $88.02 million when compared with the prior year period.
President and chief executive officer Andrea Greenberg said, "For our fiscal third quarter, MSG Networks’ exclusive live content and critically-acclaimed original programming continued to drive solid revenue and adjusted operating income results. In addition to our sustained financial performance, we believe the strength and popularity of our programming and our full complement of digital media rights will lead to new opportunities to distribute and monetize our content. We are on track for another strong year of AOI and free cash flow generation and, looking ahead, remain confident in our ability to continue creating long-term value for our shareholders."
Operating cash flow remains almost stable
Cash flow from operating activities was almost stable for the quarter at $161.67 million, when compared with the previous year period
The company has spent $2.58 million cash to meet investing activities during the nine month period as against cash outgo of $2.46 million in the last year period.
The company has spent $101.02 million cash to carry out financing activities during the nine month period as against cash outgo of $82.36 million in the last year period.
Cash and cash equivalents stood at $176.67 million as on Mar. 31, 2017, up 59.08 percent or $65.61 million from $111.06 million on Mar. 31, 2016.
Working capital increases sharply
MSG Networks Inc. has recorded an increase in the working capital over the last year. It stood at $195.39 million as at Mar. 31, 2017, up 44.85 percent or $60.50 million from $134.89 million on Mar. 31, 2016. Current ratio was at 2.31 as on Mar. 31, 2017, up from 1.98 on Mar. 31, 2016.
Days sales outstanding were almost stable at 66 days for the quarter, when compared with the last year period.
Debt comes down
MSG Networks Inc. has recorded a decline in total debt over the last one year. It stood at $1,380.95 million as on Mar. 31, 2017, down 7.22 percent or $107.41 million from $1,488.36 million on Mar. 31, 2016. Total debt was 159.75 percent of total assets as on Mar. 31, 2017, compared with 186.15 percent on Mar. 31, 2016. Interest coverage ratio improved to 8.78 for the quarter from 8.58 for the same period last year.
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