EquityResearch18January2019COREBarclaysCapitalInc.and/oroneofitsaffiliatesdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,investorsshouldbeawarethatthefirmmayhaveaconflictofinterestthatcouldaffecttheobjectivityofthisreport.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.PLEASESEEANALYSTCERTIFICATION(S)ANDIMPORTANTDISCLOSURESBEGINNINGONPAGE31.U.S.Cable,Media&TelecomQ4EarningsPreviewCable:ThiswillbethefirstquarterpostSkyapprovalforComcastwhichcouldresultinconsolidatednumbersbeingabitmessyduetopurchasepriceaccountingadjustmentsandvarianceinSkyestimates.Also,webelievethereisupsidetoSkysynergiesalthoughitisnotclearifComcastwillbereadytotalkaboutthis.FocusisalsolikelytobeonthescaleofComcast’sambitionsinOTTduetotherecentannouncementofanewOTTserviceaswellasAT&T’sstatedintenttosellits10%stakeinHuluinwhichComcastowns30%.VideonetaddshaveabitofatoughcompduetothelaunchofStreamin4Q17.Comcastalsoimplementedapricehikein4Q18.InthecaseofCharter,withbillingsystemissuesnowbehinditandthecompanyclaimingitisnowinsteadystatepostallitsdeals,itwillneedtocomeupwithacleanbeatwithnocaveats.Also,commentaryon2019capitalintensityandfutureM&Aislikelytobeimportant.ATUSwillcontinuetoseebenefitsfromitsmidyearpriceincrease,whichshouldresultinoverallrevenuegrowthconsistentwithothercablecompaniesdespitelackofunitgrowth.Thecadenceofpriceincreasein2019islikelytobemorefrontendloadedvs.lastyearwhichshouldhelprevenuegrowthremainstableuntilatleast2Q19.Telecom:VerizonandT-Mobile’spositivepre-announcementsaheadofthequarterwereincrementallypositiveforwirelesssentimentasbothdemonstratedcontinuedmomentumonbothendsofthesubscriberfunnel,outpacingexpectationsintermsofbothnetaddsandchurn.CombinedwithARPUtrendslargelysignaledbyboththroughoutthelastseveralmonths(VZmodestlypositive,TMUSflattoslightlynegative),expectationsshouldlargelybesetforVZandTMUSforthequarter.Thelargequestionthatwillbeinfocusiswhetherthesestrongresultsareduetopositive,andlargelyunan...
