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Dec 31, 2020
Cable One Q4 2020 Earnings Report
Cable One reported an increase in revenue and net income for Q4 2020, driven by growth in residential data and business services.
Key Takeaways
Cable One reported a 5.7% increase in total revenues to $336.8 million for Q4 2020, driven by a 17.1% increase in residential data revenues and a 3.4% increase in business services revenues. Net income increased by 98.2% to $106.2 million, including a non-cash gain on the sale of the Anniston System. The company also completed several strategic transactions, including an investment in MBI and an amendment to its credit agreement.
Total revenues increased by 5.7% to $336.8 million compared to Q4 2019.
Net income increased by 98.2% to $106.2 million, including a non-cash gain on the sale of the Anniston System.
Residential data revenues increased by 17.1% and business services revenues increased by 3.4% year-over-year.
The company invested in Mega Broadband Investments Holdings LLC (MBI) and amended its credit agreement.
Revenue by Segment
Forward Guidance
Cable One anticipates a positive impact on 2021 residential data revenues due to customer retention and continued growth, but faces uncertainties related to the COVID-19 pandemic's impact on the economy and its business.
Positive Outlook
- Positive impact on 2021 residential data revenues is expected.
- Significant number of residential data customers acquired during 2020 are expected to be retained.
- Continued growth of residential data customers is anticipated in 2021.
- Normalization of labor costs.
- Resumption of billing late charges, reconnect fees, and data overage fees.
Challenges Ahead
- Uncertainties related to the impact of the COVID-19 pandemic on the overall economy.
- Uncertainties related to the impact of the COVID-19 pandemic on the Company’s business.
- The Company's ability to sustain continued customer growth is uncertain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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