Cable Operators are Ripe to Outperform the Market and Other Media Sectors

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.

Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.