EBITDA of R$3.9 billion was roughly in-line with our estimate and slightly higher than consensus of R$3.8 billion on lower than expected opex. Wireless ARPU declined sequentially for the second consecutive quarter to R$27.75, which was R$0.90 below our estimate mainly due to lower than expected data ARPU.
Domestic churn ticked up sequentially to 1.5%, which the company will say is within its normal range. Is AT&T having an impact? Latam churn was also up and colocation growth slowed perhaps due to AT&T and Altan Redes in Mexico.
As we head into Charter’s Q3 2018 earnings call tomorrow, we have ten questions for Chairman and CEO, Tom Rutledge. Given that Charter historically does not select us from queue to ask questions, we thought it would be useful to lay out our questions for investors ahead of time:
We hit the streets of NYC this morning to check out the lines for Apple’s iPhone XR launch. The Flagship store had a short line of about 20 people, which is much shorter than the iPhone XS/XS Max last month. (Link) There were no lines outside of wireless operator stores, many of which did not…
Charter added 21,000 new wireless subscribers vs our 75,000 estimate in its first quarter of commercial service. Combined with Comcast’s 228,000 net adds, the Cable companies added a 249,000 net adds. Charter CFO Chris Winfrey expects an acceleration of net adds in upcoming quarters.
We are pulling back on our organic growth expectations for GTT and reducing our 12 month price target to $53 from $69 based on 10.5x our 2020 Cash EBITDA estimate of $575 million. We are maintaining our Buy rating and note that the stock is trading at less than 9.0x our 2019 Adjusted EBITDA estimate and at…
Reuters reported yesterday that CommScope was in talks with Arris about a possible acquisition. We believe this would be an attractive deal because it: diversifies CommScope’s revenue with complementary products. More diversification can translate to reduced risk of a large earnings miss. leverages the sales force to sell a broader product portfolio. offers $300-$450 million…
Comcast reported Q3 wireless net additions of 228k versus our 250k estimate and are still below early expectations for this segment. Churn is up at AT&T and Verizon after years of decline (Link), but this level of growth by Comcast does not likely concern the wireless industry.
Over the last several years, we have continuously warned legacy media companies of the dangers posed by rapidly changing consumer behavior. We initially advised legacy media companies not to sell content to Netflix, as they did not understand the long-term consequences of their actions. However, it took several years of failing a prisoner’s dilemma, before they realized the behemoth…
AT&T and Verizon reported surprising growth in post-paid phone gross additions and an increase in churn this week, stoking some concerns that competition in the wireless market is picking up. Upgrade rates and smartphone sales are also on the rise at AT&T, a possible early indication that the multi-year lengthening of the smartphone replacement cycle…
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