Prior to Discovery’s management changes in early 2007, the company only sought to leverage its TV content through Discovery’s owned-and-operated retail stores. With the (money-losing) retail stores shuttered mid-last year, Discovery has taken an aggressive approach toward monetizing its TV content in several new ways. Not only do we believe there is strong growth potential…
While valuation multiples are falling across the media landscape, we believe News Corp. shares are compelling. Investors are increasingly concerned with News Corp.’s exposure to Newspapers and TV stations, at the same time that Myspace has turned from a major positive to an unknown. Despite mid-teens organic EPS growth through the first nine-months of the…
We downgraded Virgin Mobile to Sell from Neutral based on lower estimates. We established a price target of $2 which implies 9.1x our 2008 EBITDA estimate and $91 per subscriber. Click here for a copy of our note. Click here for a copy of our estimate revisions.
We are raising our full-year fiscal (September) 2008 EPS estimate for Disney to $2.33 from $2.31, with $0.01 increases to both FY Q3 and Q4 EPS, as we believe its theme parks (particularly Walt Disney World in Florida) will continue to exceed our expectations (fiscal Q3 travel trends were solid and while fiscal Q4 has…
Two days ago Delta announced an increase in its flight reduction plans, with an article in today’s Orlando Sentinel (Click here) providing greater detail on how Orlando will be impacted. According to data obtained by the Sentinel, Delta’s cuts amount to an additional 21% reduction in seats available to/from Orlando. Delta already had announced plans…
China Mobile reported strong net subscriber additions of 7.5 million (+37.3% y/y) that topped our estimate by 105,000. China Mobile’s growth in total subscribers accelerated for the 13th consecutive month to 24.5% which is impressive given the subscriber base is now over 400 million. China Mobile’s market share of net additions rose to 83.7% in…
We lowered our price target on NII Holdings to $80 from $90 based on a reduction in our target valuation multiple to 8.5x from 9.5x our 2009 EBITDA estimate. The target implies 18x our 2009 free cash flow estimate. Click here for a copy of our note. Click here here for tables that detail our…
China Unicom reported May net subscriber additions of 1.146 million, which were 376,000 below our estimate and down 28% from last year. This was China Unicom’s lowest level of net additions since August 2006. We believe China Mobile will continue to dominate the market share of industry net additions and could increase this market share…
On July 26, 2006, with Viacom shares breaking new lows following the CBS split-off in early 2006 (7/25/06 close was $33.38 to be exact), we wrote a report entitled: “Dear Mr. Redstone: Take Viacom Private.” Essentially two years later, Viacom has replaced its CEO and CFO, exceeded our (and consensus) EPS expectations in 2006 and…
Anatel, the Brazilian telecom regulator, released wireless market share data for May. Vivo’s market share of net adds increased strongly and America Movil’s market share of net adds was slightly better than expected, while TIM Part’s market share of net adds was lower than expected. We note that operator market share can vary significantly from…
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