Published: December 5 2006 19:39
Both beam their content from high above the Earth. Both have faced falling subscriber growth expectations. So why, when it comes to satellite share prices, are TV and radio in different orbits? Since January, radio operators Sirius and XM have tumbled more than 40 per cent. TV providers DirecTV and Echostar are up 36 per cent and 63 per cent respectively.
On an operating level, radio and TV are at different stages of development. Satellite TV is profitable and short term cash flow actually benefits from slower subscriber growth, as operators spend less acquiring new customers. It is less good in the long term. DirecTV's earnings have also soared due to accounting changes, perhaps helping to drive the stock....
https://registration.ft.com/registr...s/s/ad328c18-8497-11db-87e0-0000779e2340.html
Both beam their content from high above the Earth. Both have faced falling subscriber growth expectations. So why, when it comes to satellite share prices, are TV and radio in different orbits? Since January, radio operators Sirius and XM have tumbled more than 40 per cent. TV providers DirecTV and Echostar are up 36 per cent and 63 per cent respectively.
On an operating level, radio and TV are at different stages of development. Satellite TV is profitable and short term cash flow actually benefits from slower subscriber growth, as operators spend less acquiring new customers. It is less good in the long term. DirecTV's earnings have also soared due to accounting changes, perhaps helping to drive the stock....
https://registration.ft.com/registr...s/s/ad328c18-8497-11db-87e0-0000779e2340.html
