Overview Key strengths Key risks Good revenue visibility from increased demand for high-margin broadband. Considerable upfront investment required to enter established markets and capture share. Solid track record of successful build-outs. Significant competition from better-capitalized incumbent cable and telephone operators High barriers to entry given capital spending requirements and rights of way. Lack of meaningful scale resulting in programming cost disadvantages compared with the larger cable operators. High financial leverage at about 12x and negative free operating cash flow (FOCF) on elevated capital intensity. The increasing importance of high-speed data (HSD) should enable MetroNet Holdings LLC to continue monetizing demand as customers migrate to faster tiers to enable video streaming on multiple devices, online gaming increases, and new applications emerge.
