PresentationMarc BoilardOliver Wyman Actuarial Consulting, Inc. Welcome to our webinar on Responsible Sourcing in the Cable value chain. The energy transition and the electrification of the world require more and more cables, and this will last for decades. In parallel, ESG requirements for companies are no longer an option in order to protect employees, to protect the environment and to protect the society. As a consequence, all the industry players along the cable value chain are adopting responsible sour ...

PresentationMarc BoilardOliver Wyman Actuarial Consulting, Inc. Welcome to our webinar on Responsible Sourcing in the Cable value chain. The energy transition and the electrification of the world require more and more cables, and this will last for decades. In parallel, ESG requirements for companies are no longer an option in order to protect employees, to protect the environment and to protect the society. As a consequence, all the industry players along the cable value chain are adopting responsible sour ...

Industry Dynamics - Cable, after a decade of share gains, now faces a very competitive and mature market [2] - Telcos are gaining share, especially with less expensive fixed wireless offerings like T-Mobile [3] - Cable companies are responding with price guarantees, which could pressure ARPU (Average Revenue Per User) [4] Company Performance (Charter Communications) - Charter's shares fell more than 18% after reporting unexpected internet customer losses in the second quarter [1] - Challenges for Charter are not going away, and the second half of the year will be difficult [6] - Charter is offering streaming services (Peacock, Max, RML Plus, Disney Plus, etc) for free to Spectrum customers, providing close to $100 in value [4] - Charter has a solid management team, a good product, and a good network [6] Media Landscape & M&A - Expects a lot of M&A activity in the media space, especially with spin-offs from Comcast (Versent) and WBD [7][8] - Warner Brothers Discovery's global networks are expected to be rolled up, and Warner Brothers with HBO Max is unlikely to remain an independent studio long-term [9] - There's bound to be a lot of movement in the media industry in the next one to two years [9]

Financial Data and Key Metrics Changes - In Q2 2025, consolidated service revenue and adjusted EBITDA both grew by 2% year-over-year [9][22] - Wireless service revenue and adjusted EBITDA each increased by 1% [19] - Cable service revenue and adjusted EBITDA rose by 13% respectively, marking a return to growth in this segment [10][20] - Media revenue increased by 10%, driven by strong viewership during the NHL playoffs [10][21] - Free cash flow reached $925 million, up 39% year-over-year [23] Business Line Data and Key Metrics Changes - Wireless segment saw 61,000 total subscriber net additions, including 35,000 postpaid [19] - Cable business reported a 1% increase in service revenue, supported by retail internet net additions of 26,000 [20] - Media segment revenue was boosted by the success of Sportsnet and higher revenues from the Toronto Blue Jays [21] Market Data and Key Metrics Changes - The wireless market is expected to grow about 3% for the full year, with Q2 growth estimated at around 2.5% [54] - The competitive environment remains intense, impacting ARPU, which declined by 3% year-over-year [19][56] Company Strategy and Development Direction - The company is focused on deleveraging, having achieved a leverage ratio of 3.6 times, close to pre-Shaw acquisition levels [8][26] - Plans to monetize sports and media assets are underway, with a focus on unlocking unrecognized value for shareholders [7][42] - The company aims to maintain an investment-grade balance sheet while investing in growth [26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in cable and maintaining strong performance in wireless and media [6][8] - The company highlighted the importance of government leadership in fostering a competitive environment and supporting capital investments [15][17] - Future guidance for 2025 has been updated to reflect the consolidation of MLSE, with service revenue expected to grow by 3% to 5% [28] Other Important Information - The company completed a $7 billion equity investment for a minority stake in parts of its wireless network [7] - The integration of MLSE's financial results will begin in Q3 2025, with estimated full-year media revenue of $3.9 billion [27] Q&A Session Summary Question: Update on 2025 guidance and core telecom outlook - Management confirmed that the updated guidance reflects the inclusion of MLSE, with no significant changes to the core telecom outlook [33] Question: Performance expectations for MLSE in 2025 - Management indicated that the pro forma figures for MLSE are a clean aggregation and do not include aggressive synergies [36] Question: Competitive environment in wireless and back-to-school season - Management noted that the wireless market is expected to grow about 3%, with ongoing efforts to simplify the value proposition [54][56] Question: Impact of roaming on service revenue - Management acknowledged that roaming has been a headwind but expects travel to pick up, which could positively impact service revenue [61] Question: Longer-term CapEx profile and cable CapEx reduction - Management stated that while they won't provide specific numbers, they intend to drive lower capital intensity within cable [105] Question: Multi-line discounts and ARPU impact - Management explained that while multi-line discounts may dilute ARPU, they are expected to generate incremental service revenue [115] Question: Synergies related to the MLSE deal - Management indicated that it is too early to discuss specific synergies but emphasized their track record in identifying material synergies [116]

Economic Overview - U.S. consumers have regained confidence in the economy following a trade truce between the United States and China, leading to a sharp market rebound [1][2] - Consumer confidence jumped to 98 in May, up 12.3 points from April, significantly exceeding the consensus estimate of 87 [4] - The present situation index increased by 4.8 points to 135.9, while the expectations index surged by 17.4 points to 72.8 [5] Consumer Sentiment - Positive sentiment is attributed to the easing of trade tensions, with 44% of investors believing stocks will rise over the next 12 months, a 6.4% increase from April [5][6] - The labor market outlook improved, with 19.2% expecting more job availability in the next six months [5] Stock Recommendations - Recommended consumer discretionary stocks include Netflix, Inc. (NFLX), JAKKS Pacific, Inc. (JAKK), Kontoor Brands, Inc. (KTB), Fox Corporation (FOX), and Charter Communications, Inc. (CHTR) due to positive earnings estimate revisions [2][3] - Each of these stocks carries a Zacks Rank 2 (Buy) or 1 (Strong Buy) [3] Company Insights - **Netflix, Inc. (NFLX)**: Expected earnings growth rate of 27.7% for the current year, with a 3% improvement in earnings estimates over the past 60 days [8][9] - **JAKKS Pacific, Inc. (JAKK)**: Expected earnings growth rate of 12.7%, with a 3.1% improvement in earnings estimates [10][11] - **Kontoor Brands, Inc. (KTB)**: Expected earnings growth rate of 9.6%, with a 2.9% improvement in earnings estimates [12][13] - **Fox Corporation (FOX)**: Expected earnings growth rate of 32.36%, with a 2% improvement in earnings estimates [14] - **Charter Communications, Inc. (CHTR)**: Expected earnings growth rate of 13.2%, with a 4.5% improvement in earnings estimates [15][16]

Group 1 - Charter Communications and Cox Communications have agreed to merge, marking one of the largest deals in the cable industry and corporate America in the past year [1] - The merger values Cox at $34.5 billion, consisting of $21.9 billion in equity and $12.6 billion in net debt and obligations, aligning with Charter's enterprise value based on 2025 estimated adjusted EBITDA [2] - Following the merger, the combined company will adopt the name Cox Communications and will utilize Charter's Spectrum brand for its services [4] Group 2 - Charter's CEO Chris Winfrey will continue as president and CEO of the combined entity, while Alex Taylor from Cox Enterprises will serve as chairman of the board [5] - The merger with Cox is expected to close simultaneously with Charter's acquisition of Liberty Broadband, which was approved by stockholders earlier this year [6]

Core Insights - Sirius XM Holdings Inc. is focusing on super serving its core in-car audience, leveraging its unique content offerings and distribution capabilities [3][4] - The company reported a significant reduction in churn, with first-quarter churn down 18 basis points year-over-year, despite a rate increase and macroeconomic uncertainties [4] - The rollout of the 360L platform is contributing positively to engagement metrics, indicating successful implementation of advanced personalization [5] Company Strategy - The strategic shift towards enhancing services for core audience segments is seen as a long-term growth strategy [3] - The company emphasizes its unmatched distribution in vehicles and exclusive content as key differentiators in the market [3] Performance Metrics - First-quarter churn rate reflects strong customer retention efforts, showcasing the effectiveness of the company's strategies [4] - Engagement metrics are improving due to the 360L rollout, which is being expanded across original equipment manufacturers (OEMs) [5]

Group 1: Century Communities (CCS) - Century Communities is a home building and construction company operating in major metropolitan markets in Colorado, Texas, and Nevada [1] - The Zacks Consensus Estimate for its current year earnings has been revised 20.5% downward over the last 60 days [1] Group 2: Armata Pharmaceuticals (ARMP) - Armata Pharmaceuticals is a biotechnology company focused on developing bacteriophage therapeutics for antibiotic-resistant infections using proprietary technology [2] - The Zacks Consensus Estimate for its current year earnings has been revised almost 14.1% downward over the last 60 days [2] Group 3: Cable One (CABO) - Cable One is a cable company providing internet, cable television, and telephone services primarily in the United States [3] - The Zacks Consensus Estimate for its current year earnings has been revised 8.5% downward over the last 60 days [3]

Group 1: Company Strategy and Future Outlook - The company will focus on its core business of wire and cable, enhancing its production and sales scale while avoiding low-end, homogeneous competition [5] - Emphasis on R&D innovation, particularly in high-voltage and specialty cables, to strengthen core competitiveness [5] - Plans to explore new business growth points and gradually upgrade its main business, including entering the cable installation market [5] Group 2: Financial Performance - In 2024, the company reported revenues of CNY 3.585 billion, a 20.19% increase from CNY 2.983 billion in 2023 [8] - Net profit for 2024 was CNY 133 million, up 8.43% from CNY 123 million in 2023 [8] - Contract liabilities reached CNY 40.57 million, a 187.93% increase year-on-year, primarily due to increased customer prepayments [8] Group 3: Market Position and Valuation - The company’s stock valuation is lower than peers due to various market factors, but it aims to enhance its internal value and investor relations [6][7] - The company has established a market value management system to improve governance and investor engagement [6][7] Group 4: Industry Trends and Challenges - The cable industry is transitioning to high-quality development, supported by significant national investments, including CNY 2.9 trillion for the "14th Five-Year Plan" [10] - The industry is experiencing consolidation, with smaller companies exiting the market, leading to increased competition among larger firms [11] - Technological innovation and green development are becoming essential for the industry, driven by national strategies [11] Group 5: Product Applications and Development - The company’s products are widely used in major national projects, including rail transit and energy sectors [12] - There are ongoing R&D efforts for marine and nuclear power cables, although direct sales in these areas have not yet occurred [12] - The company’s production capacity utilization is over 85%, with plans for capacity expansion to meet growing demand [13] Group 6: Risk Management - Copper prices, which account for over 80% of the company's main business costs, pose a significant operational risk [16] - The company employs various strategies to mitigate the impact of copper price fluctuations, including forward contracts and maintaining safety stock [16]

智通财经4月14日电，华丰科技涨超10%，凯旺科技、创益通、意华股份涨超5%，新亚电子、奕东电 子、精达股份、得润电子、宝胜股份等跟涨。 铜缆高速连接概念股午后走强 华丰科技涨超10% ...