Conference Call Replay | Cable's New Bull Case? Margin Expansion and Falling Capital Intensity
September 24, 2018, 10 am ET
The bear case for Cable is by now well understood. Cord-cutting is robbing cable operators of video gross margin dollars. Meanwhile, broadband is approaching saturation, portending slower unit growth ahead and leaving operators more dependent than ever on price increases. All this is now consensus.
The bull case is getting far less attention. It hinges on higher margins and lower capital intensity.
In a clients-only conference call, Craig Moffett examined the drivers of margin expansion and capital intensity declines for the major cable operators, what it means for estimates, and the implications for warranted valuations.
Craig Moffett and Michael Nathanson also discussed Comcast's acquisition of Sky.
Conference Call Replay: Click here
Conference Call Materials: Click here