Lots of market news from yesterday, including Comcast
beating the consensus, CBS crowed and named a new anchor, an outlook for TiVo
, spinoff ideas for HBO
and an onslaught for TV Everywhere:
beat projections for 1Q11 reporting 36¢/eps, up y/y from 31¢ (not counting costs of acquisition of 51% of NBCUniversal
- release is here
). Pro forma revenue was $13.3B. Comcast dropped another 39K video subs but added 418K web and 216 Voice for a combined gain of 639K or 49,039K combined ... a little ahead of Netflix
. Cable nets led the NBCU results.
1Q11 crowed as free cash flow jumped 29% y/y to $853M. Operating income more than doubled to $439M on revenues of $3.51B, despite no Super Bowl
this year, down only 1%. Cable nets revenue grew from $368M to y/y $393M. "Local Broadcasting revenues for the first quarter of 2011 increased 2% to $621 million from $606 million for the same prior-year period, primarily driven by higher advertising sales and higher retransmission revenues." So CBS doubled its quarterly dividend.•
Commenting on the DISH/TiVo
settlement, Kaufman Bros
.' Todd Mitchell
notes that there is value in TiVo's IP portfolio, "but investors should
put to rest the thesis that TiVo is going to get a license for every
DVR." There are many approaches to the core functionality, he says.
Plus "TiVo already has agreements with Comcast
which are opt-in in nature and they are not opting-in." He keeps his $10 target and 'Hold' on TiVo.
• Another day another suit against DISH
... this time Starz
are suing over DISH's free year of Starz (along with rate increase). Disney is also threatening to sue Starz. Good wrap of the mess - which he predicted - by BTIG
's Rich Greenfield here
's Richard Greenfield
wants Time Warner
to consider a HBO spinoff. Go here
and don't forget to register.
says U.S. HH with TV sets has dropped by 1.2% y/y to 96.7%. Brace
yourselves for another round of yes-it-is, no-it-isn't on cord cutting.
• Meanwhile, Parks Associates
says TV Everywhere services will be available to 81% of U.S. and
Canadian pay-TV subs by mid 2011. Maybe we'll call this "cord wrapping"
as the technique du jour to keep those paying subs.
And, in case you missed these from The Evening BRIDGE
• Auto sales are helping SiriusXM
report 1Q11 373K net sub additions bringing its sub total to 20.6M. Revenues jumped 9% y/y to $724M. Citadel
’s Vijay Jayant
wasn’t too impressed, though, calling it a “mixed quarter” bolstered by auto sales. Mel Karmazin
wants to raise prices, too ... but needs government approval.
’s Shing Yin
is downgrading Verizon
to ‘reduce’ ($33/share target) citing smartphone trends that don’t live up to the hype.
• Radio One
announced it closed on the 12.4% of equity that was previously held by DIRECTV
giving Radio One about 50.9%; the company also reported updated
preliminary results for the quarter ending in March of $65M in revenue,
up just over 10% y/y.
• Is this a sign of an improving economy? Bernstein Research
’s Craig Moffett
, covering MetroPCS
(‘marketperform’), reports, “Last week, Sprint
blew away expectations by adding 846K direct pre-paid subscribers, with
strength in all their pre-paid brands (Boost, Virgin, and
government-assisted Assurance), a result that was up 143% YoY. Today,
MetroPCS made it clear that Sprint's gain was not a matter of stealing
market share, but rather a reflection of a pre-paid segment that has
gotten its mojo back. The results bode well for growth for pre-paid peer
, as well.”
sold $2B of 10-year notes “in its first bond offering since 2009 after doubling the size of the transaction.”
reports 1st round for Insight
reported 1Q11 revenues up a real 2% powered by commercial and internet
growth while posting a loss of $110M. Video ARPU grew 8.2% to $131.01.
Basic “residential customer relationships” (?) grew by about 22K while
non-video customer relationships grew by almost 50K, up 23.5% y/y. •