The document provides an analysis of DIRECTV (DTV) following its strong 3Q13 financial results. It rates DTV as a "Buy" with a target price of $71.11 based on discounted cash flow analysis. While DTV US is facing challenges like subscriber losses, DTV LatAm provides promising long term growth opportunities due to its leading market position and the region's low cable penetration rates. Management aims to offset risks through share repurchases and growing the middle market customer segment.
BAML Leveraged Finanace Conference Investor Presentation Dec 2014Level3_Communications
Level 3 Communications is a global fiber network provider with over 200,000 miles of fiber and 13,000 employees. It generates over $8 billion in annual revenue. Enterprise services are its main growth area and account for around 70% of combined revenue following its acquisition of tw telecom. The acquisition further strengthens Level 3's position by expanding its metro footprint and market opportunity in the enterprise sector. On a pro forma basis, the combined company has $7.9 billion in annual revenue and a net debt to Adjusted EBITDA ratio of 4.5x following synergies of $240 million from operational efficiencies and reduced capital expenditures.
TENAGA NASIONAL reported a loss of RM944.1 million in 1Q09 due to higher fuel costs, IPP payments, and foreign exchange losses as the RM weakened against the USD and JPY. Margins declined significantly from 40.3% to 21.5% year-over-year. The analyst revised FY09 forecasts and cut the target price to RM6.20 due to pressure on margins from rising costs and slower demand growth. Maintaining a NEUTRAL rating, key downside risks were seen as high IPP payments, a weaker RM, and potential electricity tariff cuts without corresponding gas price reductions.
This document provides a summary of Virgin Media's performance in the second quarter of 2008. It discusses financial results including operating cash flow growth and SG&A reductions. It also reviews operational metrics such as subscriber growth, churn rates, broadband and TV services. Virgin Media saw increased revenue and profitability in Q2 2008 compared to the prior year through lower churn, higher triple-play penetration and a focus on quality customer growth. The company believes its cable network gives it advantages over DSL providers that will increase further after investments are completed.
This document discusses launching a live streaming and SVOD platform using AWS. It describes the company's background in live streaming and their three core pillars. It discusses options for building versus buying infrastructure and how the company leveraged AWS services like EC2, RDS, S3, and CloudFront in their architecture. The document also covers some challenges faced in partnering with AWS and how AWS allows for fast deployment, self-service, redundancy, scalability, an opex cost structure, future-proofing, and international expansion.
Professor Hendrik Speck - The Image and the Social. Hubert Burda Foundation.Hendrik Speck
Image and the Social. Professor Hendrik Speck university of applied sciences kaiserslautern Hubert Burda Foundation. Menzenschwand germany art history iconic turn image images icon thumbnail brand imaginary education bild bildung public sphere risk social network analysis social media web 2.0 examples audience user markets revenues google youtube myspace wikipedia flickr lastfm delicious hotforwords siren stanford itunes statistics studianalyse
Professor Hendrik Speck - Crimeblips - Web Based Framework for Crime Incident...Hendrik Speck
Professor Hendrik Speck, Crimeblips, crime statistics, Kriminalstatistik, Polizei, Berlin, mapping, visualizing, map, analysis, visualization, hot spots, trends, incident patters, police department, law enforcement, data mining, GIS, indexing, linguistic processing, clustering, filtering, web based services, graphical user interface, University of Applied Sciences Kaiserslautern
Are You Evaluating Universal Benefit and Budgeting Calculators? Policy in Practice
Policy in Practice's Universal Benefit and Budgeting Calculator software has everything you need to help people set realistic job goals - the first step of getting into work. We help you answer the question "Does work pay?"
"The Universal Benefit and Budgeting Calculator is different. Its outcome-based approach has been very powerful and has really helped us to change behaviour of both our residents and advisors." Inga Spencer, LB Hillingdon
You can show people what benefits they can get under Universal Credit and the current system, provide advice on where savings might be made, provide help with personal budgeting support and create a simple, straightforward action plan, all in one integrated platform.
View the slides from the webinar we held on Wednesday 20 July 2016.
You will see:
1. Why 83% of advisors think the Policy in Practice calculator is faster than their own “better off” calculator
2. Why 69% of advisors thought the Policy in Practice calculator is easier to use
3. Why 75% of customers found the visuals used to show their own financial position useful
4. Why customers are 85% more likely to understand the welfare system
5. How an accurate budgeting tool can also help you triage your clients to key partner organisations to save you time and resources to support your clients
BAML Leveraged Finanace Conference Investor Presentation Dec 2014Level3_Communications
Level 3 Communications is a global fiber network provider with over 200,000 miles of fiber and 13,000 employees. It generates over $8 billion in annual revenue. Enterprise services are its main growth area and account for around 70% of combined revenue following its acquisition of tw telecom. The acquisition further strengthens Level 3's position by expanding its metro footprint and market opportunity in the enterprise sector. On a pro forma basis, the combined company has $7.9 billion in annual revenue and a net debt to Adjusted EBITDA ratio of 4.5x following synergies of $240 million from operational efficiencies and reduced capital expenditures.
TENAGA NASIONAL reported a loss of RM944.1 million in 1Q09 due to higher fuel costs, IPP payments, and foreign exchange losses as the RM weakened against the USD and JPY. Margins declined significantly from 40.3% to 21.5% year-over-year. The analyst revised FY09 forecasts and cut the target price to RM6.20 due to pressure on margins from rising costs and slower demand growth. Maintaining a NEUTRAL rating, key downside risks were seen as high IPP payments, a weaker RM, and potential electricity tariff cuts without corresponding gas price reductions.
This document provides a summary of Virgin Media's performance in the second quarter of 2008. It discusses financial results including operating cash flow growth and SG&A reductions. It also reviews operational metrics such as subscriber growth, churn rates, broadband and TV services. Virgin Media saw increased revenue and profitability in Q2 2008 compared to the prior year through lower churn, higher triple-play penetration and a focus on quality customer growth. The company believes its cable network gives it advantages over DSL providers that will increase further after investments are completed.
This document discusses launching a live streaming and SVOD platform using AWS. It describes the company's background in live streaming and their three core pillars. It discusses options for building versus buying infrastructure and how the company leveraged AWS services like EC2, RDS, S3, and CloudFront in their architecture. The document also covers some challenges faced in partnering with AWS and how AWS allows for fast deployment, self-service, redundancy, scalability, an opex cost structure, future-proofing, and international expansion.
Professor Hendrik Speck - The Image and the Social. Hubert Burda Foundation.Hendrik Speck
Image and the Social. Professor Hendrik Speck university of applied sciences kaiserslautern Hubert Burda Foundation. Menzenschwand germany art history iconic turn image images icon thumbnail brand imaginary education bild bildung public sphere risk social network analysis social media web 2.0 examples audience user markets revenues google youtube myspace wikipedia flickr lastfm delicious hotforwords siren stanford itunes statistics studianalyse
Professor Hendrik Speck - Crimeblips - Web Based Framework for Crime Incident...Hendrik Speck
Professor Hendrik Speck, Crimeblips, crime statistics, Kriminalstatistik, Polizei, Berlin, mapping, visualizing, map, analysis, visualization, hot spots, trends, incident patters, police department, law enforcement, data mining, GIS, indexing, linguistic processing, clustering, filtering, web based services, graphical user interface, University of Applied Sciences Kaiserslautern
Are You Evaluating Universal Benefit and Budgeting Calculators? Policy in Practice
Policy in Practice's Universal Benefit and Budgeting Calculator software has everything you need to help people set realistic job goals - the first step of getting into work. We help you answer the question "Does work pay?"
"The Universal Benefit and Budgeting Calculator is different. Its outcome-based approach has been very powerful and has really helped us to change behaviour of both our residents and advisors." Inga Spencer, LB Hillingdon
You can show people what benefits they can get under Universal Credit and the current system, provide advice on where savings might be made, provide help with personal budgeting support and create a simple, straightforward action plan, all in one integrated platform.
View the slides from the webinar we held on Wednesday 20 July 2016.
You will see:
1. Why 83% of advisors think the Policy in Practice calculator is faster than their own “better off” calculator
2. Why 69% of advisors thought the Policy in Practice calculator is easier to use
3. Why 75% of customers found the visuals used to show their own financial position useful
4. Why customers are 85% more likely to understand the welfare system
5. How an accurate budgeting tool can also help you triage your clients to key partner organisations to save you time and resources to support your clients
Masters of the universe: 50 greatest leaders, part 1sebastien gerard
George Merck led Merck through a focus on research and development over marketing. He invested heavily in R&D, with over 5% of income going towards it starting in 1933. Through R&D, Merck discovered and industrialized important drugs like vitamin B12, cortisone, and streptomycin. Merck also grew through strategic mergers and partnerships. Merck's focus on innovation through R&D led to significant discoveries that helped patients.
El documento describe el servicio comunitario y aprendizaje servicio como una forma de vincular a la universidad con actividades solidarias que benefician a la comunidad. Los estudiantes aplican sus conocimientos a través del aprendizaje servicio para resolver problemas de la comunidad. El estudiante encontrará en el servicio comunitario un espacio para contribuir de manera significativa a través de compartir sus conocimientos y gestionar acciones conjuntas que mejoren el desarrollo integral de la sociedad.
Presentasi Perencanaan Wilayah Kabupaten Temanggung Berbasis Spatial JusticeTaufiq Nashrullah
Mengulas mengenai perspektif lain dalam mengembangkan wilayah Kabupaten Temanggung yaitu melalui spatial justice. Dengan usulan ini diharapkan dalam pengembangan wilayah Temanggung dapat lebih adil, berimbang, dan merata.
Este documento presenta las ideas centrales de la investigación-acción. Define la investigación-acción como un enfoque de investigación colaborativa que tiene como objetivo mejorar la racionalidad y la justicia de las prácticas y situaciones sociales mediante la participación de los grupos a investigar. Describe las fases del proceso de investigación-acción, que incluyen la observación, el análisis y la acción para resolver problemas de manera democrática e iterativa.
Este documento define las relaciones públicas como una función que crea e implementa políticas y programas para influir en la opinión pública con respecto a una idea, producto u organización. Explica que los profesionales de relaciones públicas asesoran a los ejecutivos sobre cómo sus acciones podrían afectar a los públicos internos y externos, y luego comunican esta información al público de manera que favorezca la comprensión y consentimiento. Finalmente, resume las principales funciones de un profesional de relaciones públicas, incluida la programación,
5th Qatar BIM User Day, Expanding BIM into Augmented and Virtual RealityBIM User Day
Author: Matthias Krampe | Augmented Reality Investments Pty. Ltd.
Content:
- Integrating AR/VR into BIM based construction projects
- 3D visualizations to improve the design decision making process
- Current and future AR/VR use cases throughout the project lifecycle
About the Qatar BIM User Day: Qatar University, HOCHTIEF ViCon and Teesside University proudly take the initiative to facilitate modern and innovative methods in the Gulf construction industry. The focus is Building Information Modeling (BIM), and our aim is to establish a knowledge platform with government, research and industry experts. The User Day aims to help people to share knowledge, discuss new technologies, and identify new potentials for BIM.
El Archipiélago Los Roques se encuentra al norte de Venezuela y está compuesto de más de 40 islas y cayos. Es el parque marino más grande de América Latina y contiene una rica biodiversidad de especies marinas, incluyendo tortugas, delfines y más de 280 especies de peces. La principal isla, Gran Roque, alberga la mayoría de la población humana de aproximadamente 3,100 habitantes y contiene servicios como una escuela y comisaría. El turismo se ha vuelto más popular en años recientes debido
100 extra images for visual brainstormingMarc Heleven
After the first successful set, another collection of 100 handpicked images for idea generation. Enjoy.
A small selection of our database of + 26.000 images related to future, innovation, brainstorming. see www.ideaDJ.com
- In Q2 2013, Level 3 Communications reported a 7.1% year-over-year growth in enterprise core network services (CNS) revenue excluding certain items.
- Adjusted EBITDA grew 12% year-over-year excluding severance charges in both Q2 2013 and Q2 2012.
- The company expects stronger CNS revenue performance in the second half of 2013 and low double-digit EBITDA growth for the full year compared to 2012.
This document provides Level 3 Communications' financial results for the second quarter of 2014. Some key highlights include:
- Core Network Services (CNS) revenue grew 6.9% year-over-year to $1.479 billion. Enterprise CNS revenue grew 11%.
- Gross margin increased to 62.3% compared to 60.6% in the second quarter of 2013.
- Adjusted EBITDA was $459 million or $463 million excluding transaction fees, up from $385 million in the prior year.
- Free cash flow improved to $62 million from $8 million in the second quarter of 2013.
Level 3 reiterated its outlook for 2014, expecting CNS
Rogers Communications reported mixed second quarter 2013 results. Postpaid subscriber additions recovered and wireless retention expenses were lower than expected. However, wireless ARPU declined unexpectedly due to lost roaming revenue and inclusion of features in core plans. Cable subscriber losses were higher than forecast despite strong broadband revenue growth from higher ARPU and prices. The analyst maintains a "Buy" rating and increases the target price to C$46 due to higher estimated 2014 EBITDA.
- Level 3 reported financial results for the third quarter of 2013, with revenue growing 2.9% year-over-year on a constant currency basis driven by 7.4% growth in enterprise core network services revenue.
- Adjusted EBITDA, which excludes severance charges, grew 13% year-to-date compared to the first three quarters of 2012, with margins expanding.
- The company refinanced $2.6 billion in debt, resulting in $23.5 million in annual net cash interest savings.
- Level 3 Communications reported financial results for the fourth quarter of 2013, with revenue growth of 4.1% year-over-year for core network services on a constant currency basis.
- Adjusted EBITDA grew 11-14% for full year 2013 compared to 2012, while free cash flow was positive $29 million for 2013 excluding certain payments.
- The company expects continued revenue and adjusted EBITDA growth in 2014.
This document provides a cautionary statement and discusses pro forma adjustments for Level 3 Communications. It notes that some statements made in the presentation are forward-looking and subject to uncertainties outside the company's control. It identifies key risks that could prevent Level 3 from achieving its goals, including successfully integrating acquisitions, managing risks associated with the global economy, and developing new services. The document also states that comparisons to prior periods are being presented on a pro forma basis, assuming the tw telecom acquisition occurred on January 1, 2014, and that growth rates are year-over-year.
Level 3 communications bof aml 2015 leveraged finance conference finalLevel3_Communications
Level 3 Communications provided a presentation at the Bank of America 2015 Leveraged Finance Conference. The presentation contained forward-looking statements about the company's performance and ability to achieve its goals, which are subject to uncertainties. It also noted that historical comparisons are presented on a pro forma basis assuming the tw telecom acquisition occurred on January 1, 2014. In the third quarter of 2015, Level 3 reported strong revenue growth, continued adjusted EBITDA growth, and an improving free cash flow trajectory. Key highlights included core network services revenue growth of 5.5% and North America enterprise revenue growth of 8.3%. Adjusted EBITDA grew to $657 million. The company generated $247 million in free cash flow.
- Level 3 Communications reported third quarter 2014 results on November 5, 2014
- Key highlights included Core Network Services revenue growth of 5.8% year-over-year and Adjusted EBITDA of $471 million
- The company also reported generating $157 million in free cash flow year-to-date
The document analyzes Twitter and provides a price target of $23 for the end of 2014 based on comparable company analysis and a discounted cash flow valuation model. It finds that while Twitter is growing rapidly, it remains unprofitable and faces significant competition. Risks to the stock include challenges becoming profitable and potential decreases in tax benefits that help reduce costs.
Masters of the universe: 50 greatest leaders, part 1sebastien gerard
George Merck led Merck through a focus on research and development over marketing. He invested heavily in R&D, with over 5% of income going towards it starting in 1933. Through R&D, Merck discovered and industrialized important drugs like vitamin B12, cortisone, and streptomycin. Merck also grew through strategic mergers and partnerships. Merck's focus on innovation through R&D led to significant discoveries that helped patients.
El documento describe el servicio comunitario y aprendizaje servicio como una forma de vincular a la universidad con actividades solidarias que benefician a la comunidad. Los estudiantes aplican sus conocimientos a través del aprendizaje servicio para resolver problemas de la comunidad. El estudiante encontrará en el servicio comunitario un espacio para contribuir de manera significativa a través de compartir sus conocimientos y gestionar acciones conjuntas que mejoren el desarrollo integral de la sociedad.
Presentasi Perencanaan Wilayah Kabupaten Temanggung Berbasis Spatial JusticeTaufiq Nashrullah
Mengulas mengenai perspektif lain dalam mengembangkan wilayah Kabupaten Temanggung yaitu melalui spatial justice. Dengan usulan ini diharapkan dalam pengembangan wilayah Temanggung dapat lebih adil, berimbang, dan merata.
Este documento presenta las ideas centrales de la investigación-acción. Define la investigación-acción como un enfoque de investigación colaborativa que tiene como objetivo mejorar la racionalidad y la justicia de las prácticas y situaciones sociales mediante la participación de los grupos a investigar. Describe las fases del proceso de investigación-acción, que incluyen la observación, el análisis y la acción para resolver problemas de manera democrática e iterativa.
Este documento define las relaciones públicas como una función que crea e implementa políticas y programas para influir en la opinión pública con respecto a una idea, producto u organización. Explica que los profesionales de relaciones públicas asesoran a los ejecutivos sobre cómo sus acciones podrían afectar a los públicos internos y externos, y luego comunican esta información al público de manera que favorezca la comprensión y consentimiento. Finalmente, resume las principales funciones de un profesional de relaciones públicas, incluida la programación,
5th Qatar BIM User Day, Expanding BIM into Augmented and Virtual RealityBIM User Day
Author: Matthias Krampe | Augmented Reality Investments Pty. Ltd.
Content:
- Integrating AR/VR into BIM based construction projects
- 3D visualizations to improve the design decision making process
- Current and future AR/VR use cases throughout the project lifecycle
About the Qatar BIM User Day: Qatar University, HOCHTIEF ViCon and Teesside University proudly take the initiative to facilitate modern and innovative methods in the Gulf construction industry. The focus is Building Information Modeling (BIM), and our aim is to establish a knowledge platform with government, research and industry experts. The User Day aims to help people to share knowledge, discuss new technologies, and identify new potentials for BIM.
El Archipiélago Los Roques se encuentra al norte de Venezuela y está compuesto de más de 40 islas y cayos. Es el parque marino más grande de América Latina y contiene una rica biodiversidad de especies marinas, incluyendo tortugas, delfines y más de 280 especies de peces. La principal isla, Gran Roque, alberga la mayoría de la población humana de aproximadamente 3,100 habitantes y contiene servicios como una escuela y comisaría. El turismo se ha vuelto más popular en años recientes debido
100 extra images for visual brainstormingMarc Heleven
After the first successful set, another collection of 100 handpicked images for idea generation. Enjoy.
A small selection of our database of + 26.000 images related to future, innovation, brainstorming. see www.ideaDJ.com
- In Q2 2013, Level 3 Communications reported a 7.1% year-over-year growth in enterprise core network services (CNS) revenue excluding certain items.
- Adjusted EBITDA grew 12% year-over-year excluding severance charges in both Q2 2013 and Q2 2012.
- The company expects stronger CNS revenue performance in the second half of 2013 and low double-digit EBITDA growth for the full year compared to 2012.
This document provides Level 3 Communications' financial results for the second quarter of 2014. Some key highlights include:
- Core Network Services (CNS) revenue grew 6.9% year-over-year to $1.479 billion. Enterprise CNS revenue grew 11%.
- Gross margin increased to 62.3% compared to 60.6% in the second quarter of 2013.
- Adjusted EBITDA was $459 million or $463 million excluding transaction fees, up from $385 million in the prior year.
- Free cash flow improved to $62 million from $8 million in the second quarter of 2013.
Level 3 reiterated its outlook for 2014, expecting CNS
Rogers Communications reported mixed second quarter 2013 results. Postpaid subscriber additions recovered and wireless retention expenses were lower than expected. However, wireless ARPU declined unexpectedly due to lost roaming revenue and inclusion of features in core plans. Cable subscriber losses were higher than forecast despite strong broadband revenue growth from higher ARPU and prices. The analyst maintains a "Buy" rating and increases the target price to C$46 due to higher estimated 2014 EBITDA.
- Level 3 reported financial results for the third quarter of 2013, with revenue growing 2.9% year-over-year on a constant currency basis driven by 7.4% growth in enterprise core network services revenue.
- Adjusted EBITDA, which excludes severance charges, grew 13% year-to-date compared to the first three quarters of 2012, with margins expanding.
- The company refinanced $2.6 billion in debt, resulting in $23.5 million in annual net cash interest savings.
- Level 3 Communications reported financial results for the fourth quarter of 2013, with revenue growth of 4.1% year-over-year for core network services on a constant currency basis.
- Adjusted EBITDA grew 11-14% for full year 2013 compared to 2012, while free cash flow was positive $29 million for 2013 excluding certain payments.
- The company expects continued revenue and adjusted EBITDA growth in 2014.
This document provides a cautionary statement and discusses pro forma adjustments for Level 3 Communications. It notes that some statements made in the presentation are forward-looking and subject to uncertainties outside the company's control. It identifies key risks that could prevent Level 3 from achieving its goals, including successfully integrating acquisitions, managing risks associated with the global economy, and developing new services. The document also states that comparisons to prior periods are being presented on a pro forma basis, assuming the tw telecom acquisition occurred on January 1, 2014, and that growth rates are year-over-year.
Level 3 communications bof aml 2015 leveraged finance conference finalLevel3_Communications
Level 3 Communications provided a presentation at the Bank of America 2015 Leveraged Finance Conference. The presentation contained forward-looking statements about the company's performance and ability to achieve its goals, which are subject to uncertainties. It also noted that historical comparisons are presented on a pro forma basis assuming the tw telecom acquisition occurred on January 1, 2014. In the third quarter of 2015, Level 3 reported strong revenue growth, continued adjusted EBITDA growth, and an improving free cash flow trajectory. Key highlights included core network services revenue growth of 5.5% and North America enterprise revenue growth of 8.3%. Adjusted EBITDA grew to $657 million. The company generated $247 million in free cash flow.
- Level 3 Communications reported third quarter 2014 results on November 5, 2014
- Key highlights included Core Network Services revenue growth of 5.8% year-over-year and Adjusted EBITDA of $471 million
- The company also reported generating $157 million in free cash flow year-to-date
The document analyzes Twitter and provides a price target of $23 for the end of 2014 based on comparable company analysis and a discounted cash flow valuation model. It finds that while Twitter is growing rapidly, it remains unprofitable and faces significant competition. Risks to the stock include challenges becoming profitable and potential decreases in tax benefits that help reduce costs.
- AT&T has diversified its revenue streams through acquisitions like DirecTV, increasing its international presence. Key trends include increased wireless/broadband subscribers in Latin America and regulatory changes benefiting its Mexico segment.
- Financial analysis shows consistent EBITDA margins and debt capacity within industry averages despite acquisitions. Valuation analysis using comparable companies, precedent transactions, and discounted cash flows indicates AT&T is currently undervalued.
DirecTV is undervalued by __%. We value DTV at $____. We project DirecTV's revenue to grow __% over the next __ years. DirecTV has outpaced the industry despite higher costs being complemented by higher revenues and a fairly stable profit margin. DirecTV also sees opportunity in Latin America's growing middle class and expanding consumer base, especially among younger demographics.
Media/Pay-TV: Focus on fundamentals and industry trends
- Pay-TV operators: Increase in the number of subscribers; Subscriber performance is driving major domestic/global players’ share price movements
- Industry trends: Time to focus on profitability of IPTV service; Increasing penetration of technologically advanced services (UHD/DCS)
Taiwan Mobile Co., Ltd. 4Q13 Results Summary Mr Nyak
Taiwan Mobile Co., Ltd. released its 4Q13 results summary on January 28, 2014. The summary showed healthy mobile revenue growth of 5% year-over-year for Taiwan Mobile, with mobile service revenue increasing and voice revenue decreasing but VAS revenue increasing. Taiwan Mobile is focusing on its CATV and smartphone strategies. Financially, Taiwan Mobile achieved its revenue and EBITDA forecasts for FY2013 and provided 1Q14 guidance projecting continued revenue growth and stable EBITDA. Taiwan Mobile also updated on regulatory approvals, capex plans, and awards.
Level 3 Communications provides an investor presentation overviewing its global network, comprehensive product portfolio, and strategy. The strategy focuses on enterprise customers, expanding the network, delivering a superior customer experience, and evolving the product portfolio. Financial highlights include steady revenue growth, improved profitability, and reduced leverage over time through prudent capital allocation. The global network, product breadth, and focus on complex customer solutions position Level 3 for continued growth.
Juniper Networks reported financial results for Q3 2013 with the following highlights:
- Revenue increased 3% quarter-over-quarter and 6% year-over-year to $1.186 billion
- Non-GAAP operating margin was 19.8%, up 0.9 percentage points quarter-over-quarter and up 2.9 percentage points year-over-year
- Non-GAAP diluted EPS was $0.33, up $0.04 quarter-over-quarter and up $0.11 year-over-year
The company provided guidance for Q4 2013 with projected revenue between $1.2-1.23 billion and non-GAAP diluted EPS between $
Starhub is a major telecommunications company in Singapore that provides mobile, pay TV, broadband, and fixed network services. It has a 30% share of the mobile market. While revenue has been stable due to its "Hubbing" strategy of bundled services, growth is low. A key risk is competition from a new entrant, as well as potential decreases in revenue from innovations. The recommendation is to HOLD Starhub stock based on a target price slightly below the current price, as it is currently overvalued but offers a high dividend yield.
Juniper Networks reported strong financial results for Q4 2013 with record revenue and earnings growth. Revenue for Q4 2013 increased 7% quarter-over-quarter and 12% year-over-year to $1.27 billion. Non-GAAP diluted earnings per share for Q4 2013 was $0.43, up $0.10 from the previous quarter and $0.15 from the same quarter a year ago. For the full year 2013, revenue increased 7% to $4.67 billion while non-GAAP diluted EPS increased $0.43 to $1.28. Juniper expects revenue for Q1 2014 to be between $1.12 billion to $1.16 billion and non-GA
The document provides Level 3 Communications' financial results for the first quarter of 2014. Some key highlights include:
- Core Network Services revenue grew 6.6% year-over-year to $1.457 billion, driven by 11% growth in Enterprise CNS.
- Gross margin improved to 61.8% due to higher margin CNS revenue growth.
- Adjusted EBITDA grew 23% year-over-year to $458 million.
- Free cash flow improved by $140 million year-over-year.
- Based on strong performance, Level 3 raised its full year 2014 guidance for Adjusted EBITDA growth to 14-18% and free cash flow to
Level 3 Communications reported first quarter 2014 results with the following highlights:
- Core Network Services revenue grew 6.6% year-over-year to $1.457 billion driven by 11% growth in Enterprise CNS.
- Gross margin improved to 61.8% and Adjusted EBITDA grew 23% to $458 million.
- Based on strong performance, Level 3 raised its full year 2014 outlook for Adjusted EBITDA growth to 14-18% and Free Cash Flow to $250-300 million.
Will Dish TV India's optimism improve missed estimates in FY15?IndiaNotes.com
Lower ad spends drive EBITDA beat; significant margin expansion ahead
3QFY15 EBITDA beat led by muted ad spends: DITV’s 3QFY15 EBITDA increased 17.8% QoQ to Rs1.91 billion (our estimate: Rs1.81 billion). Subscription revenue momentum is sustaining, well reflected in the 6.3% QoQ growth during 3QFY15 and ~5% CQGR during 9MFY15. Opex increased only 2.5% on lower ad spends (90bp margin benefit).
Similar to Work Sample - DirecTV Equity Research Report (20)
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
The Rise of Generative AI in Finance: Reshaping the Industry with Synthetic DataChampak Jhagmag
In this presentation, we will explore the rise of generative AI in finance and its potential to reshape the industry. We will discuss how generative AI can be used to develop new products, combat fraud, and revolutionize risk management. Finally, we will address some of the ethical considerations and challenges associated with this powerful technology.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
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The WhatsPump Pseudonym Problem and the Hilarious Downfall of Artificial Enga...
Work Sample - DirecTV Equity Research Report
1. Varun James Vincent | 15 Nov, 2013 1
Company Rating Date
DIRECTV Buy 15 November, 2013
North America
United States Varun James Vincent
Research Analyst
TMT Ticker Exchange Reuters Bloomberg (+1) 425 301-9471
Satellite & Cable DTV NASD DTV.O DTV:US varun@bc.edu
SUMMARY
DIRECTV (DTV) reported strong financial results for 3Q13.
Compared to year-ago qtr, total revenue grew by 6.3% YoY and
net profit by 24% YoY. We expect DTV to sustain low-mid single
digit EBITDA growth from improved Average Revenue Per User
(ARPU) growth, net additions, and lower Subscriber Acquisition
Costs (SAC). Major near-term concerns for the company include
net subscriber loss in the US, decline in growth rate for net
subscriber additions in Latin America (LatAm), increasing
competition in the Pay TV industry, escalating programming
costs, and macro headwinds including rising inflation, slowing
economy and FX. While we remain moderately bearish on the
future of the US Pay TV industry, we believe that DTV LatAm is
set for a healthy long term future. In order to stay competitive,
DTV plans to target and increase its presence in the middle
market segment, while simultaneously trying to establish itself
as the premier Pay TV operator. The company has been
generating solid free cash flow and management’s dedication to
aggressively repurchase shares are helping offset risks. As a
result, it is likely that management will achieve its YE13 goals.
VALUATION
We believe that DTV is currently undervalued and therefore,
initiate coverage with a Buy rating and a $71.11 target price.
Our target price represents ≈ 7.5x our 2014E EBITDA and is
based on discounted cash flow analysis (7.4% WACC from 9.7%
CoE and 5% pre-tax CoD, and 1% terminal growth).
COMPANY OVERVIEW
The California based DIRECTV Group, Inc., incorporated in 1977
with ≈ 30k employees as of 3Q13, is the world's leading provider
of digital television entertainment services. It markets satellite-
based Pay TV services through two geographic segments: DTV
US and DTV LatAm. In addition, it owns and operates regional
sports networks for game-related programming.
Company Price Update
Price (11/12/2013) $64.02
Price target $71.11
52-week range $47.71 - 67.85
Price / Price relative -- DTV -- S&P 500
Performance (%) 1m 3m 12m
Absolute 6.6% 8.2% 32.4%
S&P 500 Index 5.9% 8.2% 32.9%
Key Statistics
Beta 1.02
Market Cap ($M) 34,091
Shares O/S (M) 545
30 Day Avg. Vol. (M) 3.1
Dividend ($ / %) $0.00 / 0.0%
S&P 500 Index $1,770.61
Enterprise Value ($M) 57,298
Investment Fundamentals
YE 31 Dec 2012A 2013E 2014E 2015E
Revenues $29,740 $31,614 $33,510 $35,354
Adj. Profit 2,949 2,805 3,040 3,304
FCF 2,285 2,160 2,372 2,448
EPS adj. $4.58 $5.15 $6.16 $7.37
ROA 15.1% 13.6% 14.3% 15.0%
ROE -48.9% -39.5% -42.3% -52.6%
Source: Morningstar, Company data and Estimates
2. Varun James Vincent | 15 Nov, 2013 2
DTV US: DTV is the largest DTH (direct-to-home) and second largest Pay TV provider in the multi-channel video
programming distribution (MVPD) industry in the US. As of 3Q13, DTV disturbed about 2000 digital video and audio
channels to 20.2m subscribers (subs), while this segment generated 77.3% of the total revenue with average revenue
per subscriber (ARPU) of $102.37.
DTV LatAm: DTV is the leading provider of DTH in LatAm and operates in two business segments: SKY Brasil
(operations in Brazil) and PanAmericana (operations in Argentina, Venezuela, Colombia, Chile, Puerto Rico and
Ecuador). DTV has a 93% owned subsidiary in SKY Brasil and a 41% stake (equity method investment) in SKY Mexico.
As of 3Q13, these segments generated 21.9% of the total revenue with an ARPU of $49.42 from 11.3m subs.
2013 PREVIEW – What to expect in 4Q13?
DTV US: In 4Q13, DTV US may see a rising ARPU due to the new equipment warranty plan and strong pay-per-view
(PPV) revenues. The lower-cost second generation Genie box will further aid in achieving higher net additions and
lower SAC per gross additions. In addition, the 3Q13 net subs additions rose to 139k from 67k in the year-ago qtr as
gross additions increased as a result of competitors’ affiliate renewal disputes during the quarter (DISH/Raycom). Net
subs additions increased by 20% YoY to 124k from 103k.
Exhibit 1: DTV US 2013 Quarterly Subscriber Data
1Q13A 2Q13A 3Q13A 4Q13E
Gross Adds (000's) 893 839 1,109 970
% YoY -5.1% -6.0% 0.2% 4.0%
Net Subs Adds (000's) 21 -84 139 124
% YoY -74.1% -61.5% 107.5% 20.0%
Total Subs (000's) 20,105 20,021 20,160 20,284
% YoY -5.1% -6.0% 0.2% 4.0%
Source: Company reports and estimates
DTV LatAm: LatAm is currently facing economic and currency headwinds. As a result, management expects churn
(rate of disconnections) to remain at current levels (1.93%) for 4Q13. Overall DTH trends in LatAm have weakened in
3Q13: ARPU decreased by 11.7% YoY to $49.42 from $55.97. Net subs additions dropped by 52.1% YoY to 260k from
543k. With this in mind, we estimate LatAm net subs additions in 4Q13E to fall 30% YoY to 461k and in 2013 to fall to
1.5m from 2.44m. This is in line with the lower spectrum of management’s guidance for 1.5 - 1.75m. We forecast
ARPU down 12.5% due to lower quality subscribers. Nevertheless, the relatively low Pay TV penetration in LatAm (≈
30%) and the rising market share for DTV LatAm will help boost long-term growth.
Exhibit 2: DTV LatAm 2013 Quarterly Subscriber Data
1Q13A 2Q13A 3Q13A 4Q13E
Gross Adds (000's) 1,181 1,189 1,023 1,124
% YoY 14.2% 6.3% -5.4% -5.0%
Net Subs Adds (000's) 583 172 260 461
% YoY -1.7% -73.3% -52.1% -30.0%
Total Subs (000's) 10,912 11,077 11,337 11,798
% YoY 14.2% 6.3% -5.4% -5.0%
Source: Company reports and estimates
3. Varun James Vincent | 15 Nov, 2013 3
INVESTMENT RATIONALE
We believe that DTV’s stock is inexpensive and over time the aggressive share repurchase program should push
valuations higher and help offset risks to the company. As a result, we initiate coverage on shares of DTV with a Buy
rating and a $71.11 target price. Our target price represents ≈ 7.5x our 2014E EBITDA and is based on discounted cash
flow analysis. The company will be able to stay competitive if it manages to execute its proposed business strategy
effectively, viz., to target and increase its presence in the middle market segment, while establishing itself as the
premier Pay TV operator by targeting high-end subs. Despite current challenges, DTV US has been generating solid
free cash flows and DTV LatAm continues to provide promising fundamentals for long term growth.
CATALYSTS
Strategic Initiatives to further a potential M&A
Technology that enables inserting ads into individual DVRs; targeting commercial users: hotels and gyms.
Management’s dedication to continue share buyback
Solid free cash flow generation by DTV US as a result of the promising US macro environment
DTV LatAm growth profile and relatively low Pay TV penetration in LatAm (≈ 30%)
RISKS
DTV faces a highly competitive Pay TV market, with the risk of rapidly increasing programming costs, pricing
pressure and increased discounting.
M&A activity among competitors; a merger between AT&T and DISH could cost DTV its largest reselling partners.
DTV’s ability to differentiate products is challenged as Cable continues to aggressively improve its user experience.
Satellites: DTH licenses typically last 10-15 years and the DBS frequencies and available locations capable of
supporting DTV’s business have become increasingly scarce, which could hamper DTV’s ability to obtain future
capacity. DTV’s satellites are subject to significant launch and operational risks that can take up to 3 years to fix; the
loss of one or more satellites, none of which is currently insured, could materially affect the business and earnings.
The US Pay TV industry growth is sensitive to technological advancements and could be materially adversely
affected by the emergence of a more disruptive technology/business plan.
DTV LatAm is subject to various additional risks associated with doing business internationally, which include
political and economic instability, foreign currency exchange rate volatility, and further devaluations.
Increased volatility in the global currency markets present foreign exchange headwinds, particularly in Venezuela,
Brazil, and Argentina.
Other factors that could negatively affect growth prospects are: Changes in macroeconomic and regulatory
environment, increased SAC and subs churn, subs upgrade and retention costs, improper execution of proposed
business strategy, lower than expected ARPU, penetration, and net subs, and a recede in share repurchases.
LONG-TERM OUTLOOK AND RECOMMENDATION
DTV CONSOLIDATED: Share repurchases are a key component to the investment thesis for DTV. As of YE12, DTV had
repurchased almost $26b of its own stock since 2006, retiring almost 60% of its outstanding shares. In Feb 2013,
management authorized an additional $4b in share repurchases and repurchased ≈ $3.2b by the end of 3Q13. Given
management’s ongoing leverage target of 2.5 and our estimated free cash flow, DTV is in a good position to continue
repurchases of $4b per year through 2014 and $2.5b thereafter; while being able to maintain a leverage ratio of
about 1.2x to 2.3x EBITDA, while it aims to purchase ≈ 25% of its YE12 float over 2013 - 2014 and ≈ 60% until 2018.
4. Varun James Vincent | 15 Nov, 2013 4
Exhibit 3: DTV Share Repurchase Activity
2007 2008 2009 2010 2011 2012
Shares Repurchased (M) 86 131 71 136 119 107
Avg. Price Per Share ($) 23.48 24.12 23.79 38.20 45.78 48.24
Amount Repurchased ($M) 2,025 3,174 1,696 5,179 5,455 5,148
% Change In Amount Spent 56.7% -46.6% 205.4% 5.3% -5.6%
Source: Company reports
Multiples largely reflect concerns in LatAm and strategic end game in the US. We forecast DTV’s consolidated EBITDA
growth at a 4.82% 5-yr CAGR (’13-‘18E), roughly in-line with the average mid-single digit growth of its cable/satellite
peers. With DTV trading at ≈ 7.5x EV/’14E EBITDA (below peer range of 7.2-10.0x), valuation appears attractive. EPS
increases to $5.15 from $4.58 (base case) and picks up slowly as the company tries to cope with current challenges.
Since the unsuccessful merger attempt with Hulu, management has ruled out wireless and emphasized that
regulatory hurdles pose barriers for a deal; as a result pursuing accretive acquisitions in the near-term seems unlikely.
DTV US: EBITDA margin increased to 22.6% from 21.7% as revenues increased; capital expenditures on satellites
increased by 100% YoY. Net subs additions increased 107% primarily due to lower churn but gross subs additions
remained relatively flat due to continued focus on attaining higher quality subs. Total US pay TV subs increased to
20.1m by YE12, while YoY growth slowed to 0.1%. As the industry continues to mature, we estimate that cord cutting
will increase in the lower-income / younger market, going forward. As a result, the number of Pay TV subs in the US
will decline by ≈ 6m by YE17, representing an estimated compounded annual decline of 1.2%.
Exhibit 5: DTV US Historical Subscriber Data (M)
2007 2008 2009 2010 2011 2012
Total Subs 16.8 17.6 18.6 19.2 19.9 20.1
% YoY 5% 5% 4% 3% 1%
Net Subs Adds 0.88 0.86 0.94 0.66 0.66 0.20
% YoY -2% 9% -29% 0% -70%
Avg. Monthly Churn (%) 1.51% 1.47% 1.53% 1.53% 1.56% 1.53%
Source: Company reports
$0
$10,000
$20,000
$30,000
2007 2008 2009 2010 2011 2012
Exhibit 4: DTV Consolidated Revenues
DTV US DTV LatAm Sports Networks & Other
5. Varun James Vincent | 15 Nov, 2013 5
0.0
5.0
10.0
15.0
20.0
25.0
2007 2008 2009 2010 2011 2012
Exhibit 6: DTV US Subscriber Data (M)
Total Subs Net Subs Adds
0
5
10
15
20
2007 2008 2009 2010 2011 2012
Exhibit 8: DTV LatAM Subscriber Data
Total Subs (M)
Since 2008, the rate of growth in revenues YoY has been lower than the corresponding rate of growth in broadcast
programming costs YoY, while ARPU increased gradually due to increasing total subs and constant average churn.
Programming costs increased about 5% YoY in 3Q13 and 9.6% in 2012 compared to 2011. Revenues reported are 7%
higher YoY in 3Q13 due to higher ARPU and larger subs base. ARPU increased by 6.2% YoY in 3Q13 to $102.37.
Exhibit 7: DTV US Revenues vs. Programming Costs
2007 2008 2009 2010 2011 2012
Revenues ($M) 15,527 17,310 18,671 20,268 21,872 23,235
% YoY 11.5% 7.9% 8.6% 7.9% 6.2%
Programming Costs ($M) 6,681 7,424 8,027 8,699 9,799 10,743
% YoY 11.1% 8.1% 8.4% 12.6% 9.6%
ARPU ($) 79.05 83.90 85.48 89.71 93.27 96.98
% YoY 6.1% 1.9% 4.9% 4.0% 4.0%
Source: Company reports
Long-term sustainability of growth in US is unlikely because of the impending cable consolidation outlook; although
DTV’s scheduled Investor Day in December may help as management outlines strategies for TV Everywhere,
programming costs, and NFL Sunday Ticket renewal.
DTV LatAm: EBITDA margin increased to 33.6% from 28.9%;
capital expenditures on satellites increased by 45%
compared to year-ago qtr. Net subs additions decreased
52.1% compared to year-ago qtr primarily due to higher
churn and challenging economic conditions. Average
monthly churn rate increased by 18.8% to 2.3% from 1.9%
earlier. Gross subs additions remained relatively flat due to
continued focus on attaining higher quality subs. Revenues
reported are 5.4% higher YoY due to increase in total subs
base. ARPU decreased by 11.7% to $49.42 compared to
$55.97 earlier primarily due to the devaluation of bolivar
and unfavorable exchange rates in Argentina and Brazil.
6. Varun James Vincent | 15 Nov, 2013 6
Exhibit 9: DTV LatAM Historic Subscriber Data
2007 2008 2009 2010 2011 2012
Total Subs (M) 4.8 5.6 6.5 8.8 11.9 15.5
% YoY 16.7% 16.1% 35.4% 35.2% 30.3%
Net Subs Add (M) 0.59 0.62 0.69 1.22 2.06 2.46
% YoY 6.0% 11.1% 76.3% 69.1% 19.1%
Avg. Monthly Churn 1.38% 1.78% 1.75% 1.77% 1.78% 1.81%
Revenues ($M) $1,719 $2,383 $2,878 $3,597 $5,096 $6,244
% YoY 38.6% 20.8% 25.0% 41.7% 22.5%
ARPU $48.33 $55.07 $57.12 $57.95 $62.64 $57.25
% YoY 13.9% 3.7% 1.5% 8.1% -8.6%
Source: Annual report
In YE12, there were approx. 108m households in DTV’s LatAm markets with ≈ 37.2m of those households subscribing
to a Pay TV service. As such, total Pay TV penetration in DTV’s LatAm markets is ≈ 34%. Through YE17, we expect DTV
LatAm to add over 7m subs (+11.2% CAGR) with SKY Brasil contributing ≈ 4m net additions (+12.2% CAGR) and
PanAm contributing ≈ 3m net additions (+10.2% CAGR).
Venezuelan devaluation - Because of the devaluation of the bolivar in February 2013 from the official exchange rate
of 4.3 to 6.3 bolivars per U.S. dollar, DTV recorded an after-tax charge of $136m. Future devaluations would result in
ongoing impacts to results and difficulty to repatriate funds back to US.
The importance of LatAm to DTV is critical as it offers solid growth prospects as well as higher margins than the US
business. Generating cash and gaining confidence in LatAm growth is important in order to raise valuations. This,
however, is unlikely in the short term due to increased competition, economic slowdowns and rising churn; although,
the 2014 Brazil World Cup could help boost growth if the proposed strategies are executed meticulously. Despite
challenging near-term fundamentals, DTV LatAm is well-positioned to capitalize on the Pay TV market growth in the
long term because of strong fundamentals: (1) thriving economy, (2) young population, (3) significant opportunity in
the middle markets, (4) exclusive content, (5) cost advantages, and (7) tech leadership. More guidance for LatAm in
the long-term is expected during the December Investor Day.
0
5
10
15
20
2007 2008 2009 2010 2011 2012
Millions
Exhibit 10: DTV LatAM Subscriber Distribution
Sky Brasil PanAmericana Sky Mexico
7. Varun James Vincent | 15 Nov, 2013 7
SKY BRASIL: According to ANATEL, the Brazilian regulatory agency, August DTH net additions decelerated YoY to
≈114k from ≈ 254k last year with SKY adding only ≈ 27k subs. The regulatory environment is changing in Brazil which
could aid in wireless consolidations. Programming costs in Brazil can be tied to the country’s inflation. The IMF
expects inflation in Brazil to increase to 6% in 2013 from just above 5% in 2012. For the longer term, IMF expects this
inflation to ease and drop to around 4.5% in 2017. The Real has depreciated 12% YoY.
Source: IMF
INDUSTRY TRENDS AND COMPETITIVE LANDSCAPE
DTV CONSOLIDATED: DTV generates the industry’s highest ARPU for its best in class video experience; but as the level
of competition rises, it faces substantial competition in the MVPD industry against Cable TV, Telcos, Wireless
companies, and other land- and satellites-based operators. The industry as a whole has undergone significant change
in recent years and can be characterized primarily by declining growth rates and markets-share shifts among
competitors. Since the 2007 subprime debacle, the US Pay TV industry has been negatively affected by
macroeconomic factors beyond the control of industry operators. The collapse of the subprime market coupled with
depressed employment rates and weakened housing markets stunted the growth of the industry significantly.
Substitutes/Rivals/Potential Entrants: Satellite based Pay TV provides high quality digital picture and sound, including
HS and 3D programming, with the ability to quickly distribute hundreds of channels to millions of customers
nationwide, even with low population density areas, with little incremental infrastructure cost per additional subs.
This is not the same for Cable based Pay TV. Within the Pay TV industry, barriers to entry are high, while the threat of
substitutes is increasingly risky as any technological advancement that could provide viewers a similar experience
with a lower cost could expedite industry decline. The current predominant way to increase subs additions is to offer
bundled video, telephone and broadband services as consumers look for ways to reduce costs. Therefore, connecting
customers’ set-top receivers to broadband service is strategically important as it enhances video experience while
meeting demands to access programming services on mobile devices anytime anywhere.
Demand and Supply Analysis/Profitability: Since the 90’s, television viewing trends have changed with current
dominance of DVR and high-definition along with increased advertising and subs growth. Mobile viewing represents
less than 1% of total TV viewing with the average TV US household having access to 135 channels (double from 2000).
Sports, by far, have the greatest pricing power. The demand for entertainment services has been increasing since
decades and as a result has reached a state of maturity. This limits the profitability of the companies as penetration
levels increase.
0%
1%
2%
3%
4%
5%
6%
7%
2011A 2012A 2013E 2014E 2015E 2016E 2017E 2018E
Exhibit 11: Brazil Inflation Projection
8. Varun James Vincent | 15 Nov, 2013 8
DTV US: Market share has shifted significantly over the past five years. According to National Cable &
Telecommunications association, from the 131.2m US households, ≈ 100m subscribe to MVPD. As of YE12, DTV’s
20.1m subs represented ≈ 20% of MVPD subs; Cable – 57%, Telco – 9%. Remaining market is shared between other
major DTH and video-via-internet providers such as Apple, Hulu, Netflix, Google, Amazon, AT&T, Verizon, and
Comcast.
The number of subscribers being added is growing at a decreasing rate. In 2012, the U.S. pay TV industry added only
91k subscribers (versus 332k+ in 2011), ending the year with ≈ 99.8m subs. The US Pay TV industry grew by only an
estimated 0.6% (CAGR) between YE07 and YE12, adding roughly 3.2m new subs. Subs growth has not exceeded 1%
since 1Q10. In fact 2Q12 represented the tenth consecutive qtr of flattish (0.0 - 0.3%) YoY subs growth.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2007 2008 2009 2010 2011 2012
Subscribers(000's)
Exhibit 12: US Pay TV Industry Subscriber Breakdown
Cable Satellite Telcos Available Penetration Opportunity
2009 2010 2011 2012
Q1 880 363 860 814
Q2 248 -286 -522 -492
Q3 386 -212 -158 -198
Q4 173 -71 152 -33
Exhibit 13: Net Subscriber Additions
Source: Company reports
9. Varun James Vincent | 15 Nov, 2013 9
By YE12, DTV had 20.1m subs in the US, a 20.1% share of the US Pay TV market (vs. 20% at YE11). It remains the
nation’s leading DTH provider (ahead of DISH’s 14.1m subs) and second largest Pay TV provider (behind Comcast’s
22m subs). The US Pay TV industry consists of many regional and national providers that deploy various forms of
technology. As of YE12, the top 10 providers, by subs count, accounted for ≈ 86.8% of all Pay TV subs in the US.
DTV LatAm: As of YE12, DTV provided service to 24% of Pay TV households in PanAm, 31% in Brazil and 37% in
Mexico. DTV LatAm tailors its offers and products to provide to various segments by offering postpaid and prepaid
options. DTV’s video and audio is 100% digitally delivered, whereas cable typically broadcasts in analog format, which
renders a lower video/audio quality. Main DTH competitors are Telefonica, EchoStar, and Telmex; all of which have
significant resources and proven ability that could put pressure on DTV’s margins and increase churn.
Comcast
19%
DIRECTV
17%
DISH
12%
Time
Warner
Cable
11%
Verizon FiOS
4%
AT&T U-verse
4%
Cox
4%
Charter
4%
Cablevision
3%
Brighthouse
2%
Others
7%
No Coverage
13%
Exhibit 14: Pay TV Providers in the US
Total US households = 99,787; Pay Penetration = 86.8%
Brazil
49%
Argentina
19%
Venezuela
15%Colombia
7%
Others
4%
Chile
3%
Puerto Rico
2%
Ecuador
1%
Exhibit 15: DTV's Subscriber Distribution in LatAm
10. Varun James Vincent | 15 Nov, 2013 10
SKY Brasil: Brazil is the largest single Latin American market in which pay TV penetrations are still at a record low (≈
30%). ANATEL, the Brazilian regulatory authority, reported that Brazil ended 2012 with almost 16.2m Pay TV subs, up
from 12.7m subs at YE11. The Brazilian Pay TV market has grown by 147% since 1Q09. The vast majority of the
growth in the market has been driven by Satellite. Between 1Q09 and YE12, DTH subscribers grew by 353% while
cable subs grew by only 56%. The Satellite industry has increased its share of the Pay TV market in Brazil from 33.24%
at the end of 1Q09 to 60.82% at YE12. We expect hosting of the 2014 World Cup and 2016 Olympic Games to be
beneficial for the industry but churn will continue to decelerate sequentially from 4Q13; while remaining elevated for
low and middle markets. Of note, management is considering moving its low end subs to a pre-paid model similar to
that in PanAm. Other attributes to SKY Brasil include strong but decelerating subs growth, increasing competition
from several new/better capitalized entrants, and macro-economic challenges. The competitive landscape remains
tough with the regulatory changes and new entrants like Echostar/GVT impacting the wireless business.
Echostar’s recent announcement to partner with Vivendi’s GVT to provide nationwide pay TV services in Brazil is
likely to increase competition in 2014, a critical year for growth given the World Cup. GVT is a well-established player
in Brazil with over 10m broadband subs and a presence in ≈ 140 cities (with plans to expand to 50+ cities in the next
five years). Although GVT’s Pay TV has a meager 560k subs, this joint venture could boost its numbers. The company
also brings a bundled triple play product with HSD speeds of 100 Mbps, the highest in Brazil. In additional, GVT is
launching wireless services and is expected to roll out to 5-6 cities in 2013. Along with a high-power BSS satellite
(Echo XV) positioned at the 45W orbital slot, Echostar has extensive experience in providing operational support and
satellites services to video businesses including uplink services and advanced set-tops. Additional synergies between
GVT and Echostar will be leveraged to propel growth. Thus SKY Brasil will compete head-on with GVT in Brazil. Of
note, DirecTV was initially interested in acquiring GVT but pulled back its bid in 1Q13 due to Vivendi’s high asking
price of ≈ €7b or 7.4x 2013E EBITDA.
Exhibit 16: Ratio and Multiples analysis of competitors is shown below
Name Mkt Cap
(USD)
Sales
Growth (%)
EBITDA
Growth (%)
EBITDA
Margin
Capex/Sale
s (%)
ROIC
(%)
ROA
(%)
ROE
(%)
Average $35,608 5.5 (0.4) 29.5 12.0 11.9 4.7 (13.1)
DIRECTV 34,094 7.6 6.9 25.1 11.3 23.8 14.1 N.A.
COMCAST CORP 118,869 7.7 8.1 32.4 9.1 6.5 4.3 14.1
CABLEVISION SYSTEMS 5,237 (0.1) (24.7) 24.4 16.0 N.A. 3.2 N.A.
DISH NETWORK CORP 20,560 (1.2) (17.5) 20.0 6.7 10.8 3.3 N.A.
TIME WARNER CABLE 33,465 7.0 4.4 36.1 14.5 6.5 4.4 31.3
Source: Bloomberg
Exhibit 17:
Name EV EV/TTM EBITDA P/E P/FCF EV /Subscriber
Average $51,647.1 10.2x 24.7x 28.8x $4,658.9
DIRECTV 50,708.8 6.6x 12.4x 17.2x 2,532.8
COMCAST CORP 161,611.9 7.8x 21.3x 16.7x 7,421.6
CABLEVISION SYSTEMS 14,536.2 9.3x N.A. 8.9x 5,068.4
DISH NETWORK CORP 25,249.3 8.9x 21.2x 27.6x 1,791.7
TIME WARNER CABLE 56,663.1 7.2x 20.1x 15.3x 4,757.2
Source: Bloomberg
19. Varun James Vincent | 15 Nov, 2013 19
Net Debt
Debt - Revolver 20,445.0
Debt equivalent - convertible preferred stock 0.0
Cash (1,902.0)
Net debt 18,543.0
Terminal Value
Perpetuity approach
FCF in last forecast period (t) 4,023.0
FCFt+1
4,063.3
Long term growth rate (g) 1%
Terminal value 63,856.6
Present value of terminal value 44,764.1
Enterprise value 57,298.3
Exit EBITDA multiple approach
Terminal year EBITDA 10,180.4
Terminal value EBITDA multiple 7.3x
Terminal value 74,317.3
Present value of terminal value 52,097.1
Enterprise value 64,631.3
DCF Assumptions
General assumptions
Latest fiscal year end 12/31/2012
Current date 11/12/2013
Current share price $64.02
Terminal value assumptions
Terminal year EBITDA 10,180.4
Terminal value EBITDA multiple 7.3x
Long term growth rate 1.0%
Cost of capital assumptions
Cost of debt (after-tax) 3.0%
Tax rate 34.0%
Debt as % of total capital structure 30.0%
Risk free rate 1.5%
DTV beta 1.02
Market risk premium 8.0%
Equity as % of total capital structure 70.0%
Weighted average cost of capital (WACC) 7.4%
Exhibit 28:
20. Varun James Vincent | 15 Nov, 2013 20
Sensitivity Analysis
Equity value per share (growth rate vs WACC)
$71.11 7% 8% 9% 10%
1% $77.82 $61.04 $48.48 $38.74
2% $96.59 $73.96 $57.82 $45.74
3% $124.74 $92.05 $70.27 $54.75
4% $171.67 $119.17 $87.70 $66.75
Equity value per share (exit multiple vs WACC)
$84.57 7% 8% 9% 10%
6.5x $77.46 $74.09 $70.84 $67.72
7.5x $91.00 $87.18 $83.51 $79.98
8.5x $104.54 $100.28 $96.18 $92.23
9.5x $118.08 $113.37 $108.85 $104.49
Valuation
Perpetuity Exit EBITDA
Enterprise value 57,298.3 64,631.3
Net debt 18,543.0 18,543.0
Equity value 38,755.3 46,088.3
Equity value per share $71.11 $84.57
% premium / (discount) over market share price 11.1% 32.1%
Exhibit 29:
Free Cash Flow Buildup
$mm Projected
2013P 2014P 2015P 2016P 2017P
Fiscal year end 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017
EBIT 5,058.2 5,395.2 5,762.6 6,033.5 6,317.0
tax rate 34.0% 34.0% 34.0% 34.0% 34.0%
EBIAT 3,338.4 3,560.8 3,803.3 3,982.1 4,169.2
Depreciation 2,830.7 3,074.4 3,171.2 3,322.4 3,710.9
Accounts receivable (176.7) (172.3) (167.5) (151.0) (158.1)
Inventory 4.0 (12.1) (23.1) (14.8) (19.5)
Other current assets 0.0 0.0 0.0 0.0 0.0
Other assets 0.0 0.0 0.0 0.0 0.0
Accounts payable 119.8 66.3 (107.2) 60.5 63.3
Other current liabilities 0.0 0.0 0.0 0.0 0.0
Unlevered cash from operations 2,777.7 2,956.3 2,873.5 3,217.0 3,596.6
Capital expenditures (3,797.5) (3,782.4) (3,647.6) (3,566.3) (3,742.8)
Unlevered free cash flows $2,318.6 $2,734.7 $3,029.2 $3,632.8 $4,023.0
Period 1 2 3 4 5
Discount factor 93.1% 86.8% 80.8% 75.3% 70.1%
Present value of free cash flows 2,159.6 2,372.4 2,447.7 2,734.1 2,820.2