Cable Operators are Ripe to Outperform the Market and Other Media Sectors (Multichannel News)
Cable operators are on track to be the most profitable investments in the media and entertainment sector this year, with 41% profit margins, according to Ernst & Young’s 2013 “Spotlight on Profitable Growth: Media and Entertainment.” Cable TV networks follow right behind with 38% estimated profitability. The free report evaluates industry performance from 2009 to 2013. The accounting and advisory firm’s study also expects interactive media to achieve the industry’s highest EBITDA (earnings before interest, taxes, depreciation, and amortization) growth rate: 22% five-year compound annual growth rate (CAGR). Indeed, CAGR is 10% for cable networks and 6% for cable operators 6%, the study reported. The media and entertainment industry also should outperform the major stock market indices in 2013, according to the report.