Cablevision Systems Corp

Twitter’s 1Q17 revenues of $548.3 million represented a 7.8% drop from 1Q16.

The growth trend in Charter’s core operating profitability further strengthened during the quarter. Charter’s adjusted EBITDA increased 10.4% YoY.

With the merger of Charter Communications (CHTR), Bright House Networks, and Time Warner Cable (TWC), the US cable space has consolidated even more.

At the end of 1Q16, Suddenlink and Cablevision had ~1.6 million and ~3.1 million customer relationships, respectively.

On a YoY (or year-over-year) basis, Suddenlink’s revenue rose ~6.7% to reach ~$0.63 billion in 1Q16.

An improving broadband proposition with higher Internet speeds should positively affect Cablevision (CVC), considering the competitive dynamics in its industry.

After the merger of Charter Communications, Time Warner Cable, and Bright House Networks, the US cable industry is moving toward further consolidation. Altice is expected to acquire Cablevision by the end of June 2016.

After the approval of the Cablevision transaction by the New York Public Service Commission, Moody’s Investors Service cut Cablevision’s Corporate Family Rating from Ba2 to B1.

The OTT (over-the-top) landscape continues to change with new entrants, and Hulu has changed its business strategy to withstand the increasing competition.

Thomas M. Rutledge shed more light on the FCC’s merger conditions for the expansion of Charter Communications’ mass-market broadband footprint.

Let’s see what kind of scale Cablevision and Suddenlink may give Altice in the US cable space compared to some of its peers.

The merger of Charter Communications (CHTR), Time Warner Cable (TWC), and Bright House Networks was completed on May 18, 2016.

At the end of 1Q16, Charter’s video customers had increased 0.9% YoY and reached 4.4 million. This was well above the company’s estimated video penetration level for the quarter.

During Charter Communications’ (CHTR) recent 1Q16 earnings call, CEO Tom Rutledge shared the progress on the Charter, Brighthouse, Time Warner Cable merger.

Analysts are expecting Cablevision’s Internet additions to decline in 1Q16. According to Wall Street analysts’ consensus, Cablevision’s net Internet additions are expected to be much lower than 1Q15.

During 4Q15, Charter’s Internet customers increased robustly by ~9.8% YoY to reach ~5.6 million.

According to the analysts’ consensus, Charter’s revenue is expected to grow by ~7.3% YoY to ~$2.5 billion for the quarter. In 4Q15, the cable company’s revenue rose by ~6.4% YoY.

In this part of the series, we’ll look at Time Warner Cable’s (TWC) value proposition among some of the major cable companies in the United States.

Wall Street analysts expect Time Warner Cable’s net video customers to remain in the green during the quarter. But they expect the company’s net video additions to continue to shrink.

Wall Street anticipates Time Warner Cable’s (TWC) year-over-year growth momentum to increase in 1Q16 compared to 4Q15.

Time Warner Cable (TWC) will report its 1Q16 results on April 28, 2016. In this series, we’ll look at some of the operational and financial aspects that could affect these results.

Charter is trading at a forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of ~12.8x, as of April 18, 2016.

California is the only state where the merger between Charter Communications, Time Warner Cable, and Bright House Networks has yet to be approved. It could be approved as early as May 12.

Cablevision Systems’ (CVC) cable business saw revenues of $5.8 billion in 2015, which represents a growth of 0.9% over 2014.

Cablevision Systems announced its 4Q15 and 2015 earnings on February 25. It reported revenues of $6.5 billion in 2015, which was up by 0.8% over 2014.

Currently, the US cable industry is undergoing a consolidation of sorts. A quadruple-play option could further fuel this consolidation.

If liquidity declines for junk bonds, the liquidity risk premium would rise. This would increase the coupon set on the bond. It will raise the borrowing cost for a company.

As of December 23, 2015, the stocks with the highest trailing-one-year returns were Cablevision Systems, Starbucks, Electronic Arts, and Expedia.

So far, 2015 has been less than generous to the SHRAX. It has hovered at the bottom of the pack of 11 funds across the periods under review, including the YTD period.

SHRAX is the only fund among nine that posted positive returns in just one of our five periods. It’s also the only fund that fell in the one-year period.

Liquidity, or “financial market liquidity,” refers to the ease with which you can buy or sell a security in financial markets at minimal cost.

Stanley Fischer expressed his views on the US economy at the G30 Annual International Banking Seminar on October 11. This came three days after the dovish minutes of the FOMC September meeting.

Leveraged loans funds saw outflows for the week ended September 30 for the tenth successive week. With outflows for the week ended October 2, YTD outflows are $9.9 billion.

The US leveraged loans market saw an allocation of $12.1 billion worth of senior loans in September 2015. This was 55.7% lower than the $27.4 billion priced in August 2015.

The acquisition of Cablevision (CVC) by Altice will create the fourth-largest cable operator in the United States. The US cable industry is already feeling increasing competitive pressure from over-the-top players such as Netflix (NFLX).

In May this year, Altice made a bid for a majority 70% stake in Suddenlink for $9.1 billion. The deal is expected to close by the end of this year.

Leveraged loans funds saw the ninth straight week of outflows for the week ended September 23. The outflows totaled $257.6 million, compared to net outflows of $350.4 million in the previous week.

Altice N.V. issued $4.8 billion in junk bonds on September 25 in a three-tranche issue. The same day, Olin Corp. issued $1.22 billion in junk bonds in two tranches.

Cablevision has a non-solicitation agreement with a fiduciary out. This means if another suitor approaches Cablevision, the company can discuss a merger with that suitor.

The SPDR S&P 500 ETF (SPY) stumbled by 0.22% on September 17 after the Fed decided not to raise rates. Cablevision returned 13.91%, making it SPY’s top gainer on the day.

GigaPower should help AT&T compete more effectively with cable companies, considering the firm’s relative performance compared with other Internet service providers.

AMC Networks is a pioneer in the cable television programming industry known for delivering high quality programming content to its audience.

At the end of 2014, U-verse evolved as a substantial revenue stream for AT&T’s (T) wireline division. Consumers contributed ~96% to adjusted U-verse revenue during 4Q14.

In US residential households, wireline and wireless voice services act as substitutes. There has been a decline in wireline-only households.

Telecom companies compete directly with cable companies—particularly in wired voice, data, and TV services. They compete in the residential and small business segments.

In July 2014, Verizon introduced an innovative service called Speed Match, which allows customers to receive upload speeds that match their download speeds.

Recently, AT&T announced that its GigaPower service has exceeded expectations in Austin and will soon start deploying in Dallas and North Carolina.

While Charter has openly and aggressively pursued Time Warner, any deal would likely be difficult to execute and fraught with risks.

Time Warner Cable has received the greatest interest from potential suitors, as the company lags the overall industry in terms of growth and subscriber trends.

On Friday, November 22, 2013, news emerged that Comcast (CMCSA) was interested in a potential purchase of rival cable provider Time Warner Cable (TWC).