Nomura Securities on Cable & Satellite: Not Enough To Overcome Q2 Seasonality, But New Guides Are Cool

Nomura Securities on Cable & Satellite: Not Enough To Overcome Q2 Seasonality

Analyst, Mike McCormack, said, "We do not expect the 2012 Cable Show will do much to change investor sentiment, especially as the seasonally weak second-quarter results hover. Key themes: 1) usage-based pricing is here, but without much fanfare; 2) DISH Network's (Nasdaq: DISH) Hopper DVR platform is not expected to destabilize the affiliate revenue pool; 3) guide technology is improving (Comcast's (Nasdaq: CMCSA) X1 platform was impressive along with a Cablevision (NYSE: CVC)/Samsung SmarTV App); 4) regulators appear to be at bay; 5) there were no new datapoints on current quarter trends from our one-on-one meetings. We expect the Pay TV group to take a summer breather, before an increased capital returns story emerges later in the year. Within the industry, we continue to favor Time Warner Cable (NYSE: TWC)."

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