While we have been relatively quiet on Disney over the past nine months (this is actually our first note since Nov. 2006), Disney shares have also been relatively quiet with shares essentially flat over that time period compared to the S&P 500’s increase of over 5%. We are raising our EPS estimate for Disney for…
Yesterday the FCC released a summary of the rules for the 700 MHz spectrum auction and as many expected they included restrictive provisions which require open access of devices and applications on a third of the spectrum being auctioned. We don’t think these rules will have any impact on the industry other than perhaps wasting…
We downgraded Clearwire to Neutral from Buy based on Q2 results reported last night that were below our estimates. We were surprised by the level of sequential decline in subscriber growth in Q2. While management previously highlighted seasonal trends, we incorrectly thought the market opportunity, compelling product and early stage of the company could buck…
With CD unit sales down 19% ytd in the US (with dollar sales at least a few points worse, due to falling wholesale prices) and total industry unit sales (physical and digital) down 8.4%, an artists’ reliance on touring profits continues to grow. Global piracy concerns are growing and there is no end in sight…
With CHTR trading at $4.01, leverage at 9.6x (as of the end of Q1 ’07, annualizing Q1 EBITDA) with over $2.50 per full-year ’07E EBITDA multiple point, CHTR is an inherently volatile stock. While rising macro concerns about the US debt markets should not be ignored, it is worth remembering that CHTR does not have…
NII reported strong subscriber growth in Q2, raised guidance and announced a major expansion in its network buildout in Brazil. Click here for a table that has a detailed comparison of Q2 results versus our estimates. The company plans to dramatically expand its coverage in Brazil from 65 million POPs to more than 95 million…
Mediacom suffered through a brutal battle with Sinclair Communications in late 2006/early 2007 that resulted in the loss of over 2% of MCCC’s subscriber base (32K subs in Q4 ’06/Q1 ’07). The MCCC/SBGI battle was fought over how much MCCC needed to pay SBGI for retransmitting its television stations – MCCC lost badly. MCCC not…
Telecom Italia, which owns 70% of Brazilian wireless operator Tim Participacoes, made positive comments about Brazil on their quarterly call today. While the company stopped short of raising guidance for TIM Part, it did admit that it is ahead of its targets and that it could experience a significantly better trend for the end of…
America Movil’s Q2 EBITDA was in-line with our estimate despite incurring the extra costs associated with higher than expected subscriber growth. However, it only used $260 million of its more than $1.1 billion of free cash flow in the quarter to repurchase stock. We believe the company can generate at least $3.0 billion of free…
Investors often think of Comcast as “the cable industry,” rather than just the largest/dominant company within the industry. That, in and of itself, highlights the burden that sits on Comcast’s “shoulders.” Comcast’s Chairman and CEO, Brian Roberts recently turned 48, and we see every indication that he and his family will want to continue building/growing…
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