Cable One Inc.

Overview Key strengths Key risks Only provider capable of delivering 1Gbps internet speeds in most markets. Competition from incumbent phone companies that could upgrade to more competitive fiber-based services in select markets. High barriers to entry given capital spending requirements and rights of way. Participation in lower-income markets that have kept broadband penetration rates below incumbent peers. Good revenue visibility from increased demand for high-margin broadband. Acquisitive company subject to re-leveraging. The increasing importance of high-speed data (HSD) should enable Cable One to continue monetizing demand as customers migrate to faster tiers to enable video streaming on multiple devices, online gaming, and new applications. We believe Cable One's subscriber base will continue to expand from both more homes passed and

...Price increases and subscriber growth will raise high-margin broadband revenue for at least the next two years. The increasing importance of high-speed data (HSD) should enable Cable One to continue monetizing demand as customers migrate to faster tiers to enable video streaming on multiple devices, online gaming, and new applications. We believe Cable One's subscriber base will continue to expand from both more homes passed and market share gains from telecom competition that uses copper-based infrastructure with inferior speeds....

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