Mark Crean-Allen
๐—ช๐—ต๐—ฎ๐˜ ๐—ถ๐˜€ ๐—ต๐—ฎ๐—ฝ๐—ฝ๐—ฒ๐—ป๐—ถ๐—ป๐—ด ๐˜๐—ผ ๐—”๐—ง&๐—ง ๐—ฎ๐—ป๐—ฑ ๐——๐—ถ๐˜€๐—ฐ๐—ผ๐˜ƒ๐—ฒ๐—ฟ๐˜† ๐—ง๐—ผ๐—ฑ๐—ฎ๐˜†!? So despite $T (AT&T Inc) beating analysts and also providing further information about the upcoming merger with $DISCA (Discovery Inc) who expects the deal to close by April but no later than June. Both earlier than expected. ๐“๐ก๐ž ๐๐จ๐ฌ๐ข๐ญ๐ข๐ฏ๐ž๐ฌ $T free cash flow was up 14% from analysts expectations. Revenue beat the analysts 40.3 Billion at 41 Billion. Added 271000 new bradband subricbers, Added 884000 new post paid phone subscribers HBO max totals 73.8 Million, up 4.4% in 3 months. Around 13 million for total of 2021. $T will own 71% of the new Warner bro discovery company. Discovery has a great CEO to successfully run the business Amazing free cash flow and net profit margin due to the low cost and high turnover of its content. This is also the same for them to service the potential debt with the merger ๐“๐ก๐ž ๐‚๐จ๐ง๐œ๐ž๐ซ๐ง๐ฌ Ebitda was about $1.2 billion below consensus, at $11.3 billion, down 12% year over year. The largest contributor to that decline was WarnerMedia. $T dividend yield is to be cut in half (could also be a positive to make the company more stream lined) Its still a mystery if $T will split or spin the transaction. On top of that it just adds to investors uncertainty around the merger, untill official confirmation there will always be a sour taste. Main concerns for Discovery is the sheer amount of debt it will take on with deal Concerns if the merger will even go through Analysts unsure how to price the business and whether to include the new HBOmax ๐‚๐จ๐ง๐œ๐ฅ๐ฎ๐ฌ๐ข๐จ๐ง My view on both of these companies have not changed. I am still bullish on $DISCA and $T . In my personal opinion I hope even more fear is added to drag the price down so I can add even more capital. I have added more capital into $T today on this draw down as I like this for its dividend yield even after the preposed cut. The sentiment in inverstors in recent times, good news is bad news, no news is bad news and bad news is also bad news. I like to look past the noise and focus on the fundamentals.
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