Tag Archives: cmcsa

Akamai Q1: Media Revenue Seen Down But Security Services Up

Akamai Technologies ‘ ( AKAM ) revenue from media and entertainment customers such as Apple ( AAPL ) and Facebook ( FB ) is expected to fall in Q1, but analysts expect a boost from the Internet infrastructure company’s move into security services. Cambridge, Mass.-based Akamai, the biggest provider of content delivery network services, is set to report Q1 earnings after the close Tuesday. Akamai’s global CDN helps Apple, Facebook and other speed up video streaming, e-commerce transactions and business software downloads over the Internet. Apple, though, is among the big tech companies that has been developing its own CDN, while also using other CDN providers. Mark Mahaney, analyst at RBC Capital , is modelling a 3.5% year-over-year decline in sales for Akamai’s media and entertainment business but a 15% rise in cloud-security revenue. “We are looking for $207 million, or a 3.5%  (media segment) decline, as two of the company’s largest media customers (likely Apple, Facebook) transition off the Akamai platform. The concern over whether additional top media customers will migrate off Akamai remains the most material overhang on the stock,” Mahaney said in a research report. “Security is becoming an increasingly meaningful part of the financial story, accounting for 12% of revenue in 2015. We are modeling 45% year-over-year growth to $79.8 million.” Akamai competes with  Level 3 Communications ( LVLT ), and Limelight Networks ( LLNW ) as well as startups Fastly and CloudFlare. Verizon Communications ( VZ ) ( IBD ), Amazon.com ‘s ( AMZN ) Amazon Web Services,   IBM ( IBM ) and Comcast ( CMCSA ) also are emerging as new rivals in some parts of the CDN market. Analysts polled by Thomson Reuters estimate Q1 EPS of $564 million, up 7% from the year-earlier period. Analysts estimate earnings per share minus items of 63 cents, up 3%. Akamai stock is about even in 2016 but down 32% over the past 12 months. Akamai has a low IBD Composite Rating of 50 out of a possible 99. Akamai stock was down a fraction, near 51, in early trading in the stock market today .

Apple, Alphabet Cut Lobbying Spend As Facebook Pumps It Up: Report

Alphabet ( GOOGL )-owned Google, Apple ( AAPL ) and Comcast ( CMCSA ) have slashed spending on D.C. lobbying, according to a report Thursday from Consumer Watchdog. Still, Consumer Watchdog Privacy Project Director John Simpson said in a statement, “It’s important to understand just how much money these companies are throwing around in Washington to buy the policies they want. Policymaking is now all about big bucks, not big ideas.” In Q1, Google slashed spending on lobbying by 25.5% to $3.80 million, the consumer group said. AT&T ( T ) had the highest lobbying outlay, at $4.48 million, among the group of 16 tech and communications companies that Consumer Watchdog monitored. AT&T rival Verizon ( VZ ) spent $3.59 million, up 7.2%. Consumer Watchdog based its report on new disclosure reports from the Clerk of the House of Representatives. Social networking leader  Facebook ( FB ), which has been increasing its Washington presence, spent $2.78 million, up 13.9% year over year. Microsoft ( MSFT ) also topped $2 million in lobbying spending, Consumer Watchdog said. Microsoft reported expenditures of $2.02 million, a 6.9% increase. Lobbying spending jumped 39% at Amazon.com ( AMZN ), to $ 2.65 million, marking the fourth consecutive quarter that the e-commerce leader’s spending topped $2 million, the disclosure records show. Apple’s spending fell 8.9%  to $1.13 million while spending by Yahoo ( YHOO ) dipped 5.5% to $690,000. Cable firm Comcast ( CMCSA ) spent $3.72 million, a 19.5% decrease. Digital Advertising Rising, Helped By Presidential Election Research group eMarketer said on Thursday that spending on paid media worldwide will climb 5.7% in 2016 to $542.55 billion, propelled by increased investments in digital advertising. While down from eMarketer’s previous forecast, the amount still represents accelerated growth compared with 2015, when spending on paid media worldwide rose 5%. Major events including the U.S. presidential election and the Rio Summer Olympics will contribute to rising ad spending, eMarketer said. While TV remains a dominant ad spending destination, ad spend on digital channels is showing the fastest increase year over year, eMarketer said. In the U.S., political ad spending on digital this year is estimated to nearly triple its rate of spending from 2014, says eMarketer, which adds that Nomura Securites estimates that digital will capture 9.8% of total U.S. political ad spending share this year, up from a 3.6% share in 2014. Broadcast TV will see a 59.4% share this year compared with a 61.3% share in 2014. In total, political advertising is expected to reach $10.2 billion this year, up from $7.49 billion in 2014 and $8.81 billion in 2012.

Cable Firms Prepare To Fight Set-Top Rules That Help Google, Apple

Cable TV companies are readying a court challenge if the Federal Communications Commission approves new set-top box regulations that would let companies like Apple ( AAPL ), Alphabet ( GOOGL ), Amazon.com ( AMZN ) and others sell devices that provide access to cable programming. The National Cable & Telecommunications Association has hired Theodore Olson, an attorney at the noted law firm Gibson, Dunn & Crutcher, to battle the FCC’s set-top box proposal. Olson, a former solicitor general, represented George W. Bush in the contested 2000 election vs. Al Gore that ultimately was decided by the U.S. Supreme Court. Apple also recently hired Olson and Gibson, Dunn & Crutcher in its battle vs. the Federal Bureau of Investigation involving a court order to unlock an iPhone used by an assailant in the San Bernardino terror attack. President Obama last week stated his support for opening up the set-top box market for more competition. The proposal would require pay-TV and technology companies to jointly develop new standards for devices providing access to cable TV networks. The cable TV industry pays programmers billions of dollars for content rights, and it’s unclear how that business model would be impacted. Comcast ( CMCSA ) and phone company AT&T ( T ), also a pay-TV provider, have criticized the set-top box initiative. The FCC, with three Democratic members and two Republicans, is expected to vote on the plan after a public comment period closes. FCC Chairman Tom Wheeler says the plan will make it easier for consumers to switch from pay-TV companies’ set-top boxes leased monthly to new devices sold on a retail basis by consumer electronics or Internet companies. Gibson, Dunn ‘Most Certainly Preparing For Litigation’ “We are most certainly preparing for litigation in the event the FCC moves forward with its invasive and illegal plan to restructure the video programming market,” said a spokesperson for Gibson, Dunn & Crutcher. Brian Dietz, a NCTA spokesman said, “We are exploring all options.” The NCTA previously hired Gibson, Dunn & Crutcher to challenge the FCC’s Title II-based net neutrality rules that were enforced in mid-2015. The U.S. Court of Appeals for the District of Columbia Circuit is expected to rule soon on the net neutrality case. Pay-TV companies may have an uphill legal battle vs. the FCC’s set-top box rules, says Paul Gallant, an analyst at Guggenheim Partners. “Cable/telcos will almost certainly challenge any FCC final new set-top rules in court,” Gallant said in a February research report. “They will likely argue, among other things, that the FCC lacks authority to give app makers access to programming/guide information. “It’s far too early to predict the court outcome, but it’s important to note that the FCC is operating under a clear congressional mandate to make the set-top business competitive. That doesn’t necessarily mean the FCC will prevail, but the agency probably will feel good about its chances with that statutory starting point.” Under the proposed new set-top rules, the FCC says that only pay-TV subscribers will gain access to programming, and that copyright protections will be preserved. Google, critics say, aims to swap its own advertising for the local ads sold by cable TV companies.