InvestorIdeas, a leading online global investor resource issues the Sector Close Up – Communications Stocks. As competition heats up within the cable and communications arena, technology has enabled companies to achieve further growth by providing extended and value-added bundled services to its existing customers. With Digital Television, Video on Demand (VOD), High Definition and various mobile features, companies are able to generate more revenue from their existing customer base by improving the television experience.
Stand out performers include Comcast (NASDAQ: CMCSA), with profits up 28% for the second-quarter and EchoStar Communications (NASDAQ: DISH) who recently reported a rise in profits of 33%. With bundling services becoming a key strategy for reducing churn, attracting new customers and expanding revenue sources, technology and integration costs become differentiating factors among players within the cable and satellite market.
As technology continues to evolve making high quality content more readily available, issues of copyright protection are expected to become a greater priority. Operating within this arena is digital watermarking provider USA Video Interactive Corp. (OTCBB: USVO; TSX.V: US). The Company is also in the midst of a Video-on-Demand patent infringement lawsuit filed against various cable companies including Time Warner, Charter Communications, and Comcast Cable. Shares of USA Video are currently trading between $0.13-$0.15.
“The advent of digital television, whether as HD broadcast, VOD or new download or streaming services by the broadcasters, represents a new set of channels by which high quality content products are delivered to people to be used as desired. If they desire to steal and sell this content, USVO's SmartMarks technology is ready and applicable to hold crooks responsible for the violation of the contract between content producers and their honest audiences,” describes Mr. Patrick Gregston, Business Development for USA Video Interactive Corp.
Sector Close Up - Communications Stocks:
Comcast Corporation’s (NASDAQ: CMCSA) second-quarter report revealed a 28% climb in profit, earning $588 million for the April-June period versus $460 million for the same period last year. The stock has felt downward pressure in part due to the Company’s resistance to raise guidance. Comcast shares are down $1.37 since the July 26th earnings release based on its recent close of $25.84. The Company expects the second half of 2007 to show accelerated cable growth.
Time Warner Cable (NYSE: TWC), currently trading around the $35 dollar mark, saw second quarter profit rise 5.2%, earning $1.07 billion for the quarter.
Cablevision (NYSE: CVC) has seen its stock move up over 14% year-to-date to its recent close of $32.65. The Company recently reported a rise in revenue of 12 percent to $1.57 billion for the second quarter.
Charter Communications (NASDAQ: CHTR), generated $1.5 billion in revenue for the quarter ended June 30th and despite reaching $4.90 mid July, is down more than $2.00 in the past month.
DirecTV Group (NYSE: DTV), the number one U.S. satellite provider reported earlier this month that second-quarter earnings were down approximately 2% to $448 million compared to $458 million for the same period last year, despite an increase in demand for high-definition services. DirecTV shares are up more than 6% since earnings were released August 9th.
EchoStar Communications Corp. (NASDAQ: DISH), saw its second-quarter profit rise 33% with net income coming in at $224.2 million versus $168.8 million from a year ago. Shares are up more than 10% since the August 9th earnings release.
Digital Media Portal Sponsor:
USA Video Interactive Corp. (OTCBB:USVO;TSX.V:US)
USVO compensates InvestorIdeas; see disclaimer below.
INVESTORS: Gain Free Access to stock & industry news, financial columnists & Blogs; investor research tools , stock directories, trading center, audio interviews, educational podcasts & online investor conferences.
COMPANIES: Gain Investor & Industry Awareness: Submit News Releases, Featured Company Showcase, Participate in Articles, Podcasts & Online Conferences.
Disclaimer: Our sites do not make recommendations, but offer information portals to research news, articles, stock lists and recent research. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. We attempt to research thoroughly, but we offer no guarantees as to the accuracy of information presented. All information relating to featured companies is sourced from public documents and/ or the company and is not the opinion of our websites. The site is compensated by featured companies, news submissions and online advertising. USA Video Interactive Corp. (OTCBB:USVO; TSX.V: US) $1500USD per month and 200,000 options.
Source: InvestorIdeas, USA Video Interactive