Moody’s: Broadband Is the Game

Cash flow growth is expected to decelerate to between 2% and 3% for cable operators in 2015, down slightly from the 4% rise expected this year. But a continued focus on higher margin broadband and commercial services should keep profit margins fairly steady for the foreseeable future, according to credit ratings agency Moody’s Investor’s Service.

In its report, Broadband is the Game, Cable is Poised to Win, Moody ‘s estimates that cash flow margins will decline mainly because of the maturing video business. Video customer losses and higher content costs should continue to impact that segment of the business going forward. And though the broadband business has also shown some signs of maturation as subscriber growth has slowed down, Moody’s believes cable operators will see profits rise as customers upgrade their service to higher speed and higher costs tiers. Earlier this year, the broadband subscribers surpassed cable video customers for the first time.