35 days ago • Posted by William Ramstein

Cable M&A market is seeing activity--Insight: cable broadband margins hover around 60%!

The inventoried 2020 deals involved an estimated 3.7 million serviceable homes and businesses, valuing each targeted passing at an average of $2,604. This is up 18% year over year, but essentially in line with the average dollar figure per passing recorded in 2015, when Charter Communications Inc. acquired Time Warner Cable Inc. for $77 billion and Altice Europe laid out the groundwork to form Altice USA with its acquisitions of Suddenlink and CableVision Inc. The broadband take rate across the 2020 cable M&A footprints averaged an estimated 36.2%. This is significantly lower than the national cable average, with the metric standing at 51.2% as of Dec. 31, 2020. The differential underscores the growth and profitability opportunities — cable broadband margins hover around 60% — presented by the footprints acquired in 2020.

Source: spglobal.com