How Sensitive Is Time Warner’s Stock Price To Number Of U.S. HBO Subscribers?
HBO accounts for 35% of the valuation of Time Warner Inc (NASDAQ: TWX). HBO drives majority of its revenues from US subscribers. It charges more than $7 per month as affiliate fee per subscriber which is the highest among all channels. We believe the affiliation fee will grow at an average rate of 3% over each year. However, the growth rate of number of U.S. subscribers is highly volatile, considering the large amount of cord-cutting in U.S. As per our current estimates, the sensitivity of TWX stock price to 1% change in growth rate of number of U.S. subscribers is 1%.
- What’s Next For Corning Stock After An Upbeat Q1?
- Down 22% YTD, What Lies Ahead For Starbucks’ Stock?
- Amazon Stock Is Up 22% YTD, What’s Next?
- With Deliveries Picking Up And Budget Brand In The Offing, Is Xpeng Stock Attractive?
- Will Rising Margins And Stock Buybacks Drive Apple Higher?
- Should You Pick CVS Health Stock At $55 After Q1 Miss?
Have more questions about Time Warner? See the links below.
- How Has Time Warner’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Did Time Warner’s Revenue & EBITDA Grow In The Last 5 Years?
- By What Percentage Can Time Warner’s Revenue & EBITDA Grow In The Next 3 Years?
- Cable Networks vs Studio: What’s Time Warner’s Revenue and EBITDA Breakdown?
- How Does HBO Compare With Other Premium Networks?
- HBO, HBO Now Will Be Key Growth Drivers For Time Warner
- For Time Warner’s Consumer Products Business, Lego Dimensions And Other Video Games And Licensing Will Fuel Growth
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Time Warner
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)