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.
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.
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.
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.
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.
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.
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.
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 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).
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.
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.
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.
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).
