Comcast Corp: Cable unsubscribes from Media; Reiterate Underweight

研报英文原文证据摘录

Comcast Corp: Cable unsubscribes from Media; Reiterate Underweight

loss of scale (~45% of revenue, 17% of EBITDA by our estimate) could be a headwind Adj. EBITDA 37,384 33,372 34,600

for CMCSA’s A3/A-/A- credit ratings. Details on other assumptions on page 2. FCF 19,234 14,003 15,164

Prelude to other transactions: “Absolutely Not”…Yet? BalanceCash Sheet (US$ mm)9,481 7,356 7,400

While CMCSA rejected the idea that the separation is a step toward strategic Total Debt 98,937 90,512 90,512

transactions for either resulting company, its change in view on keeping the businesses Net Debt 89,456 83,156 83,112

together leaves some event-risk uncertainty specifically for Comcast/RemainCo, in our Gross leverage 2.6x 2.7x 2.6x

view. We have previously estimated an illustrative combination with Charter (as proxy for Net leverage 2.3x 2.4x 2.3x

a cable consolidation theme) could result in leverage in the range of 3-4x (and ratings in

BBB+/BBB area), depending on cash/stock mix and synergies. We are unclear how cable Source: Company filings & BofA Global Research.

M&A would resolve increased competition from fiber, fixed wireless and potentially

satellite, apart from cost synergies being recycled for more competitive pricing.

Comcast Corp: Flip the channel;

Reiterate Underweight Reinstate at Underweight 26 March

We reiterate our Underweight rating on CMCSA, despite the 4-7 bp widening on the 2026

back of the spin-off transaction announcement (CHTR IG bonds are 13-15 bp tighter).

We believe investors will increasingly factor in the risk of strategic transactions

following CMCSA reshaping as a pure-play US cable/broadband business, which is facing NTM = next twelve months

increased competition and growth headwinds that have weighed on the stock. While