320.80 0.00 (0.00%)
After hours: 6:28PM EST
|Bid||296.86 x 1400|
|Ask||333.76 x 100|
|Day's Range||320.19 - 329.05|
|52 Week Range||250.10 - 396.64|
|Beta (3Y Monthly)||1.22|
|PE Ratio (TTM)||8.79|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
The following are excerpts from a CNBC EXCLUSIVE interview with Liberty Media Chairman John Malone and CNBC's David Faber on CNBC's "Squawk on the Street" (M-F 9AM – 11AM) today, Wednesday, November 14th from Liberty Media Day in NYC.
AT&T’s (T) DIRECTV NOW is a video streaming service that delivers content directly to consumers over the Internet as a substitute for traditional satellite or cable connections. In the third quarter, the telecom company added 49,000 customers to its DIRECTV NOW video streaming service, down from 296,000 DIRECTV NOW net customer additions in the third quarter of 2017.
Like other pay-TV service operators, AT&T (T) is facing a decline in its US pay-TV subscriber base due to cord-cutting. In the third quarter, AT&T lost 346,000 traditional US pay-TV customers. This number includes 359,000 satellite TV customer losses and 13,000 U-verse TV customer gains. In addition, Comcast (CMCSA) and Charter Communications (CHTR) had lost 95,000 and 66,000 residential video customers, respectively. This reduction in the traditional pay-TV customer base is mostly driven by rapid growth in the over-the-top (or OTT) video viewing trends.
Dish Network (DISH) has been improving its DISH TV churn rate in each quarter for more than five consecutive quarters. The company has been making efforts to acquire higher-quality subscribers amid increased pressure from online streaming competitors. The company has also been giving priority to customer requirements and has launched new innovative products to attract higher-quality customers.
In the third quarter, Frontier Communications’ (FTR) subscriber losses continued as the company lost broadband customers. On a net basis, the wireline player lost 61,000 broadband customers, compared to a loss of 63,000 broadband customers in Q3 2017. Frontier’s broadband subscribers fell ~5.0% year-over-year or YoY to 3.8 million at the end of September 30.
In the third quarter, Frontier Communications’ (FTR) subscriber losses continued as it lost video customers. Frontier lost 37,000 video subscribers in the third quarter, which includes 8,000 DISH customers. It lost 36,000 video subscribers in Q3 2017, which included 10,000 DISH customers. The company’s total video customers declined ~11.5% year-over-year or YoY to 1.1 million at the end of September 30. The main reason for the reduction was the growing popularity of over-the-top or OTT video streaming services.
Frontier Communications (FTR) stock reacted negatively to the company’s third-quarter earnings, falling ~22.8% on November 7. Frontier’s adjusted net loss attributable to its common shareholders decreased to $7.0 million in the third quarter, compared to a net loss of $73.0 million in the third quarter of 2017. The telecom company reported an EPS loss of $0.07 in the third quarter of 2018, narrower than its adjusted EPS loss of $0.94 in the third quarter of 2017. Wall Street analysts, on average, were expecting the company to post an adjusted EPS loss of $0.23 in the third quarter.
Dish Network’s (DISH) revenues have been falling YoY (year-over-year) for the past eight straight quarters. During the third quarter, its revenue reached $3.395 billion, down 5.2% YoY from the third quarter of 2017 and down 1.9% from its second-quarter revenue of $3.46 billion.
Dish Network (DISH) stock rose 2% on November 7 and closed at $32.12 after the US satellite TV provider reported better-than-expected earnings results for the third quarter. Other pay-TV rivals AT&T (T), Comcast (CMCSA), and Charter Communications (CMCSA) have fallen 15.3%, 2.4%, and 2.3%, respectively, YTD. Dish Network posted revenue of $3.395 billion in the third quarter, slightly missing Wall Street’s expectation of $3.397 billion.
Frontier Communications (FTR) has been posting negative EPS for the past ten consecutive quarters. The telecommunications company again disappointed investors with its third-quarter earnings results, which it released on November 6.
By rotating restaurants weekly in corporate buildings, the company is boosting sales and raising satisfaction of the tenants.
Although Charter Communications (CHTR) completed the acquisition of Time Warner Cable and Bright House Networks in May 2016, the process of absorbing the businesses has been going on for more than two years. In its latest investor update, Charter said that the integration of Time Warner Cable and Bright House will be largely complete at the end of 2018, so it can operate as a single company from there. Charter acquired Time Warner Cable and Bright House for nearly $70 billion, transforming itself as the second-largest US broadband company and the third-largest pay-TV company.
A senior Democratic U.S. senator on Thursday unveiled draft legislation that would allow hefty fines and as much as 20-year prison terms for executives who violate privacy and cybersecurity standards. Senator Ron Wyden released a draft of legislation that would grant the Federal Trade Commission authority to write privacy regulations. The measure would also allow maximum fines of 4 percent of revenue - matching European rules adopted earlier this year.
As of October 29, Verizon (VZ) was the largest US telecommunications company by market capitalization of $233.4 billion, followed by AT&T (T) at $215.3 billion. Charter Communications (CHTR) had a market capitalization of $68.9 billion, as you can see in the chart below.
Now let’s take a look at Charter Communications’ (CHTR) performance in the video space. Its residential video customers fell ~1.6% YoY (year-over-year) to 16.1 million at the end of the third quarter. On a net basis, it lost 66,000 residential video customers compared to 104,000 net losses in the third quarter of 2017. The decline was mainly driven by rapid growth in OTT (over-the-top) video viewing trends.
Comcast (CMCSA) delivered adjusted EBITDA of $7.3 billion in the third quarter, up 2.5% YoY led by higher top-line growth. The media giant achieved higher adjusted EBITDA on the back of higher EBITDA levels in its Cable segment, which more than offset the decline in the NBCUniversal segment.
Comcast (CMCSA) witnessed strong growth in the cable communications business segment in Q3 2018. Cable revenues were up 3.4% in the third quarter driven by consistent net additions of high-speed Internet customers. In the third quarter, revenue from high-speed Internet grew 9.6% to $4.3 billion in the quarter, driven by net additions of total high-speed Internet customers by 363,000, which consisted of net additions of 334,000 residential high-speed Internet customers and additions of 29,000 business services high-speed Internet customers.
Comcast’s (CMCSA) cable business generated revenues of $13.8 billion in Q3 2018, an increase of 3.4% YoY. Cable revenues have been rising for the past several quarters, as can be seen in the chart below. Revenues were mainly driven by strong growth in business services units, high-speed Internet, and advertising revenues. The growing popularity of Xfinity Mobile and rising revenue growth from the X1 licensing agreements also have been benefiting the cable business. However, video and voice revenues declined in the quarter.
Now let’s take a look at Frontier Communications’ (FTR) performance in terms of broadband subscriber net additions in the third quarter. Wall Street analysts expect a net loss of Frontier’s broadband subscribers in the third quarter, mainly due to the migration of Frontier’s subscribers to the top US cable players, including Charter Communications (CHTR) and Comcast (CMCSA). In the second quarter, on a net basis, Frontier lost 32,000 broadband subscribers compared to its loss of 100,000 broadband subscribers in the previous year’s quarter. The company’s number of broadband subscribers had fallen ~4.9% YoY (year-over-year) to 3.9 million as of June 30.
In the previous article, we discussed how much total revenue growth we can expect from Frontier Communications (FTR) in the third quarter. Now let’s take a look at the company’s expected adjusted EBITDA in the third quarter.
Charter's (CHTR) third-quarter 2018 results bear the adverse impact of its integration program but high-speed drives Internet customer growth.