MetroNet Holdings LLC

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 wireless and programming cost disadvantages. High financial leverage of about 8x and negative free operating cash flow (FOCF) on elevated capital intensity. S&P Global Ratings believes MetroNet Holdings LLC?s subscriber base will continue to expand from a combination of more homes passed and market-share gains from telecom competition that uses copper-based infrastructure with inferior speeds. The company continues to take share from

...S&P Global Ratings believes MetroNet Holdings LLC's subscriber base will continue to expand from a combination of more homes passed and market-share gains from telecom competition that uses copper-based infrastructure with inferior speeds. The company continues to take share from competing cable companies, which can offer comparable speeds, with better customer service, which is reflected in a net promoter score well above the industry average. In 2023, we expect MetroNet's MetroNet Systems Holdings LLC (MatureCo) operations will net...

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