AT&T Wireless reported EBITDA of $3.6 billion that was $97 million lower than our estimate because it cost more to acquire a customer than we expected. We believe the higher customer acquisition costs and lower gross margins are red flags about the wireless industry in the United States. ARPU would be a third red flag…
We believe NCMI investors have become overly concerned with quarterly box office performance and the risk of advertising “make-goods,” if attendance in a given quarter is down year-over-year. Make-goods are simply a fact of life for the cinema advertising industry; most quarters have some level of make-goods, particularly as advertising is sold against three separate…
TIM Participações reported EBITDA of BRL743 million that was BRL19 million better than expected due primarily from stronger than expected gross margins and despite the higher marketing costs associated with better than expected subscriber growth. The EBITDA performance was impressive given the 325,000 upside to our gross addition estimate of 3.375 million.
Yesterday, Cablevision announced that current voice customers can add up to three additional phone lines for only $14.95 per line (per month), down from the prior second line rate of $29.95. We view this as yet another example of how CVC’s marketing is far more aggressive than its cable industry peers. We believe marketing ideas…
In a brief letter to the FCC this morning, Google CEO Eric Schmidt committed to bid at least $4.6 billion in the 700 MHZ auction if its open access terms are met. This is a surprising development to us given our belief that Google was not serious about its intention to bid although we admit…
China Mobile reported June net subscriber additions of 5.5 million (+1% q/q and +24% y/y) that topped our estimate by ~260,000. Prepaid net additions of 5.2 million were responsible for the upside to our estimate, while postpaid net additions were in-line with our estimate. Prepaid accounted for 93% of net additions in the month of…
Vivo reported solid second quarter results. Net additions were nearly 1 million higher than our estimate of 270,000 based on stronger than expected gross additions and lower than expected churn. ARPU and subscriber acquisition costs (SAC) per subscriber were in-line with our estimate. EBITDA was substantially lower than our estimate primarily due to the subscriber…
Just a reminder that Vivo reports tomorrow. Industry numbers have been reported by Anatel already but we think that the strong subscriber growth could be a positive surprise tomorrow. Our net addition estimate was established at the start of the quarter at 273,000 but the monthly upside has been significant and the company could top…
Earlier today, Verizon wireless reported that it added 1.6 million net subscriber additions versus our estimate of 1.7 million but there was no breakdown between post paid and prepaid. The company also disclosed that it had a reduction of 300,000 wholesale customers likely related to the bankruptcy filing of Amp’d Mobile. While the slowdown in…
China Unicom (CHU) reported June net subscriber additions of 1.5 million, which topped our estimate by 300,000 from upside in both its GSM and CDMA business. In each of the past four months, Unicom has outpaced our net addition estimate by more than 300,000 subscribers and in February it beat by more than 200,000 subscribers…
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