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More About Cable One (CABO)

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Category: Cable One (CABO)
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Date: 25 February 2021
Stock price of Cable One (CABO)
: $2010.90
We take a more detailed look at Cable One (CABO) a fully integrated provider of data, video and voice services in 21 Western, Midwestern and Southern states.
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  ​As part of our rebranding initiative during 2019, we launched new pricing and packaging across the majority of our footprint. We offer simplified data plans with lower pricing and higher speeds across our premium tiers, with download speeds up to 1 Gbps available to more than 97% of our residential customers as of December 31, 2019"

More About Cable One (CABO)

Cable One, Inc.  is a fully integrated provider of data, video and voice services in 21 Western, Midwestern and Southern states. We provide these broadband services to residential and business customers in more than 950 communities. The markets we serve are primarily non-metropolitan, secondary and tertiary markets, with 78% of our customers located in seven states: Arizona, Idaho, Illinois, Mississippi, Missouri, Oklahoma and  Texas.  Our  biggest  customer  concentrations  are  in  the  Mississippi  Gulf  Coast  region  and  in  the  greater  Boise,  Idaho  region.  We  provided  service  to approximately  907,000  residential  and  business  customers  out  of  approximately  2.3  million  homes  passed  as  of  December  31,  2019.  Of  these  customers, approximately 773,000 subscribed to data services, 314,000 subscribed to video services and 139,000 subscribed to voice services.
Autonation outlet at night

Products Sold By Cable One

We are a fully integrated provider of data, video and voice services to residential and business customers across various geographic regions in the United States. We provide services that are similar to those provided by cable companies, telephone companies and fiber providers, among others. These providers, each to a varying degree, own and/or lease a network that allows them to deliver their services and distribute their signals to the homes and businesses of subscribers. In addition  to  building  their  own  network  backbone  and/or  leasing  physical  access  to  the  network  backbone,  companies  providing  video  services  also  purchase licenses  to  provide  their  subscribers  with  access  to  television  channels  owned  by  programmers  and  broadcasters  via  distribution  over  the  network  backbone.

Companies providing video services also typically sell advertising on their video channels. These providers generate revenue by charging subscription fees to their residential and business customers at rates that vary according to the data, video and/or voice services for which customers subscribe and the type of internet access and equipment furnished to them. These companies generally market and sell their services in bundles or packages in order to maximize the number of PSUs per household, as they believe it is desirable to sell multiple products as a package as the fixed  costs  per  customer  can  be  spread  over  multiple  PSUs.  These  providers  generally  operate  in  their  chosen  geographic  markets  under  either  non-exclusive franchises or other telecommunications licenses granted by state or local authorities for specified periods of time.

While we are smaller than the nation’s biggest providers of data, video and voice services, we have a record of consistent, long-term financial and operational success driven by our differentiated operating philosophy and culture. We emphasize focus as opposed to scale, which is a departure from the historical, more conventional strategies employed in our industry, but is well suited to the markets in which we operate and enables us to take advantage of our strengths.

Products Offered By Cable One

Residential Data Services
Residential data services represented 46.9%, 46.0% and 43.4% of our total revenues for 2019, 2018 and 2017, respectively. As part of our rebranding initiative during 2019, we launched new pricing and packaging across the majority of our footprint. We offer simplified data plans with lower pricing and higher speeds across our premium tiers, with download speeds up to 1 Gbps available to more than 97% of our residential customers as of December 31, 2019. We also offer our customers the option to purchase an unlimited data plan regardless of speed tier. Further, to meet the increasing bandwidth needs of our customers who use a growing number of devices in the home, we offer most of our customers our advanced Wi-Fi service combining state-of-the-art technology solutions with certified technicians, who locate and configure hardware based on individual customer needs. This service provides customers with enhanced Wi-Fi signal strength, which extends and improves the Wi-Fi signal throughout the home.

Residential Video Services
Residential video services represented 28.7%, 32.0% and 34.6% of our total revenues for 2019, 2018 and 2017, respectively. We offer a broad variety of residential video services, generally ranging from a basic video service to a full digital service with access to hundreds of channels. Our basic video service generally consists of local networks, local community programming, such as governmental and public access, and certain other channels, such as weather, shopping and religious channels. Our digital video service includes national and regional cable networks, music channels and an interactive, electronic programming guide with parental controls.  We  also  offer  premium  channels,  which  include  networks  such  as  HBO,  Showtime,  Starz  and  Cinemax,  that  generally  offer,  without  commercial interruption, movies, original programming, live sporting events and concerts and other features. Our digital video customers may also subscribe to our advanced services.  Our  advanced  video  services  include  whole-home  DVRs,  which  digitally  record  programming  and  pause  and  rewind  live  programming,  and  highdefinition set-top boxes, which provide high-resolution picture quality, improved audio quality and a wide-screen format and allow our customers to access internet content on their televisions.
Cable One truck

Competition Of Cable One 

Although  approximately  74%  of  our  footprint  currently  has  limited  competition  for  residential  high-speed  data  service  at  speeds  comparable  to  our  own,  we anticipate a slow yet steady growth of new entrants into our markets. Currently, approximately 8% of the residential homes passed in our markets have access to fiber-to-the-premises from our competitors who typically offer only high-speed data service. However, AT&T also offers video and wireless voice services along with high-speed data service. We also face increasing competition from wireless telephone companies for our residential voice services, as our customers continue to replace our residential voice services with wireless voice services. New entrants with significant financial resources may compete on a larger scale with our video  and  data  services,  and  as  more  wireless  voice  service  providers  offer  unlimited  data  options,  some  customers  may  choose  to  forgo  our  data  services altogether. We may also face increasing competition from various providers of wireless internet offerings, including wireless telephone carriers that are developing high-speed “5G” wireless networks and public locations or commercial establishments offering Wi-Fi at no cost.

A small number of municipalities  have also announced plans to construct  their own data networks with access speeds that match or exceed those of our own through  the  use  of  fiber  optic  technology.  In  some  cases,  local  government  entities  and  municipal  utilities  may  legally  compete  with  us  without  obtaining  a franchise from a state or local governmental franchising authority (“LFA”), reducing their barriers to entry into our markets. The entrance of municipalities as competitors in our markets would add to the competition we face and could lead to additional customer attrition. While  not  an  area  of  strategic  focus  for  us,  our  video  business  also  faces  substantial  and  increasing  competition  from  other  forms  of  in-home  and  mobile entertainment, including Amazon Prime, Apple TV, Disney+, Hulu, Netflix, Sling TV, YouTube TV and an increasing number of new entrants who offer OTT video programming, including many traditional programmers. Because of the significant size and financial resources of many of the companies behind such service offerings, we anticipate that they will continue to invest resources in increasing the availability of video content over the internet, which may result in less demand for the video services we provide. Despite the negative impact this competition has on our video business, these services also generate additional demand for our residential data business due to customers’ continuing and growing need for data services.

Competition for dedicated fiber-optic services for enterprise business customers is also intense as both local telephone companies and regional overbuilders offer data and voice services over dedicated fiber connections. While certain of these entities are currently more widely known for dedicated fiber services than we are, we maintain a competitive advantage through our local presence and deep customer relationships in the communities we serve

Crocs (CROX) stock price chart over the last 5 years

The image below shows the stock price chart of Cable One (CABO) over the last 5 years. And its  been a good time for Cable One stockholders. Over the last 5 years the stock of Cable One increased by a very impressive 362.3%. No investor would say no to those kind of returns.
Cable One (CABO) stock price chart over the last 5 years
Cable One (CABO) stock price chart over the last 5 years

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