Cable One Inc (CABO)

History and Background

Cable One, Inc. (NYSE: CABO) was founded in 1998 as a subsidiary of The Washington Post Company. It was spun off as a publicly traded company in 2015. Cable One primarily operates in smaller cities and rural areas, providing broadband, video, and voice services.

Core Business Areas

• Residential Broadband: Provides high-speed internet services to residential customers.
• Business Services: Offers data, voice, and cloud services to businesses.
• Residential Video: Offers traditional and streaming video services to residential customers.
• Voice Services: Provides telephone services to residential and business customers.

Leadership and Structure

Julie Laulis is the CEO. The organizational structure is hierarchical with functional departments covering operations, finance, marketing, and technology.

Key Offerings

• High-Speed Internet: Offers a range of broadband speed tiers. Cable One generally does not disclose market share data for specific products. Competitors include: Cox Communications, Charter Communications (CHTR), and Verizon (VZ).
• Bundled Services: Packages of internet, video, and voice services. Cable One generally does not disclose market share data for specific products. Competitors include: Cox Communications, Charter Communications (CHTR), and Verizon (VZ).
• Business Internet and Data Solutions: Provides services to businesses. Cable One generally does not disclose market share data for specific products. Competitors include: Lumen Technologies (LUMN), AT&T (T).

Industry Overview

The telecommunications industry is experiencing consolidation, increased competition from wireless providers (5G), and growing demand for high-speed internet.

Positioning

Cable One focuses on smaller markets where it often holds a leading market position. Its strategy is to offer competitive broadband speeds and excellent customer service.

Total Addressable Market (TAM)

The US broadband market is estimated to be worth hundreds of billions of dollars. Cable One's position within this TAM is focused on rural and secondary markets. The overall TAM for the entire US internet market (including mobile) is expected to reach $347.2 Billion in 2024

Key Competitors

• Charter Communications (CHTR)
• Cox Communications (Private)
• Verizon (VZ)
• Lumen Technologies (LUMN)
• AT&T (T)

Competitive Landscape

Cable One competes with larger cable operators and telcos. Its advantage is local focus and customer service, but it faces challenges from larger competitors with more resources.

Fidelity Communications

• Year: 2019
• Acquisition Price (USD millions): 525.9
• Strategic Rationale: Expanded Cable One's footprint and increased its subscriber base in adjacent markets.

Historical Growth: Historically, growth has been driven by broadband subscriber additions and price increases.

Future Projections: Analysts project moderate revenue growth driven by broadband and business services.

Recent Initiatives: Recent initiatives include expanding fiber infrastructure and launching new business services.

Cable One is a smaller cable operator focusing on rural markets with an advantage in customer service. While it has been able to maintain margins, competition from larger companies and fiber roll outs pose a serious threat. Cable One also needs to deal with the issue that they are behind with new technology adoption. The company needs to continue to aggressively expand in new rural markets by acquisition to survive.

Data Sources:

• Company SEC Filings (10-K, 10-Q)
• Industry Reports
• Analyst Estimates
• Company Press Releases

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market share data is based on estimates and may not be precise. Financial data is based on publicly available information and may be subject to change.