Pace have fallen a lot over the last 6 months. The move to digital is near, do you think they can recover. Presently way off previous highs.

From Reuters earlier :- AT&T in talks to buy DirecTV for nearly $50 billion - sources

Barclays Capital Overweight 357.15 - - Reiterates

Goldman Sachs Neutral 357.15 385.00 385.00 Reiterates

Today's Market: Why Verizon Will Not Bid For Dish

Summary

Analyze why VZ will not be making a bid for DISH.

Discuss why the T and DTV deal makes more sense than anything VZ could put together in the industry.

Look at valuation in regards to the satellite providers.

Interim Results


Financial highlights
· Revenue down 13.6% to $1,138.9m (H1 2013: $1,318.4m), in-line with management expectations.
· Gross profit up 5.4% to $245.8m (H1 2013: $233.1m), gross margin 21.6% (H1 2013: 17.7%).
· Adjusted EBITA1 up 9.9% to $106.3m (H1 2013: $96.7m), operating margin2 9.3% (H1 2013: 7.3%).
· Profit after tax up 9.3% to $55.4m (H1 2013: $50.7m).
· Basic Earnings per Share ("EPS") up 8.5% to 17.8c (H1 2013: 16.4c) with adjusted basic EPS3 up 15.4% to 25.5c (H1 2013: 22.1c).
· Interim dividend 2.25c per share, a 23.0% increase on H1 2013 (H1 2013: 1.83c).
· Free cash flow4 up 18.4% to $108.9m (H1 2013: $92.0m).
· Closing net debt5 $167.6m (Pro forma net debt6 of $279.2m immediately following Aurora acquisition).

Operating highlights
· Increased operating profit on reduced revenues, due to Aurora contribution, improved revenue mix, improved supply chain efficiency and increased operational efficiency.
· Significant further progress made against the Strategic Plan laid out in November 2011:
· Continue to transform core economics:
o Underlying operating costs7 reduced by 6.1% whilst continuing to further invest in growth opportunities.
o Integration with Aurora complete and committed synergies, both cost and working capital, achieved ahead of plan with further opportunities for savings identified.
o Fifth consecutive half of strong cash flow generation (102.4% conversion of adjusted EBITA to free cash flow). Aggregate free cash flow of $500.6m over last five halves.
· Maintain PayTV hardware leadership:
o Reconfirmed market leader; global number 1 in Media Servers8, Set-top boxes ("STBs")9 and Advanced Telco Gateways10.
o Strong uplift in Customer Premise Equipment ("CPE") revenue in H2 2014 anticipated due to new product launches with key customers.
o A number of new wins and deployments have been achieved across all regions with customers including Sky Italia, Oi, GVT and BeIn Sports.
· Widening out:
o 213.8% increase in non-CPE revenue (H1 2013: 4.3% increase) to $167.9m (H1 2013: $53.5m) driven by the acquisition of Aurora Networks.
o Pace achieved a number of key wins across all areas of our Software, Networks and Services offerings and has made good progress on major product and customer project launches for this period and H2 2014.
o Demand for network products is stronger than anticipated; revenue and profit growth expected in H2 2014.

Changes to Executive Management

19 Nov 2014 Pace PLC PIC Exane BNP Paribas Outperform 0.00 340.10 530.00 530.00 Reiterates

19 Nov 2014 Pace PLC PIC JP Morgan Cazenove Overweight 0.00 340.10 445.00 441.00 Reiterates

Trading Update

Profitability for FY2014 expected to be ahead of guidance: operating margin not less than 9.2%, revenue growth of 6% to $2,610m, free cash flow in excess of $200m.

Saltaire, UK, 13 January 2015: Pace plc ("the Company", "Group"), a leading global developer of technologies and products for PayTV and broadband service providers, today announces the following unaudited update for the financial year ended 31 December 2014 ahead of preliminary results to be announced on 3 March 2015.

The Group performed well in 2014; full year profitability will be ahead of the Board's previous guidance:
· Record Q4 revenue has resulted in a strong finish to the year. Full year revenue expected to be up 6% to $2,610m (2013: $2,469.2m).
· Adjusted EBITA[1]of at least $240m, 24% ahead of 2013 (2013: $193.6m).
· Underlying operating margin expected to be not less than 9.2%, 1.4ppts ahead of 2013 (2013: 7.8%).
· Adjusted basic EPS[2] expected to be at least 56c, 26% ahead of 2013 (2013: 44.3c).
· Free cash flow[3] in excess of $200m (2013: $209.0m).
· Net debt of less than $95m as at 31 December 2014 (31 December 2013: $33m net cash). Since the completion of the acquisition of Aurora Networks for a headline consideration of $310m on 6 January 2014, net debt has reduced by more than $180m (65%).

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PIC PACE

13 Jan 15 JP Morgan Cazenove Overweight 358.90 441.00 444.00 Reiterates

441p SP TARGET

Preliminary Results for the year ended 31 December 2014

Strong performance in 2014: Adjusted EBITA up 24.5% to $241.1m, basic adjusted EPS up 43.6% to 63.6c and free cash flow of $204.0m. Dividend up 27.5% to 7.00c per share.

Financial highlights
· Revenue up 6.1% to $2,620.0m (2013: $2,469.2m).
· Adjusted EBITA1 up 24.5% to $241.1m (2013: $193.6m).
· Operating margin2 up 1.4ppt to 9.2% (2013: 7.8%).
· Profit after tax up 53.1% to $148.0m (2013: $96.7m).
· Basic EPS up 51.9% to 47.4c (2013: 31.2c) with Adjusted basic EPS3 up 43.6% to 63.6c (2013: 44.3c).
· Proposed final dividend 4.75c per share, resulting in full year dividend of 7.00c per share, a 27.5% increase on 2013 (2013: 5.49c), reflecting the Board's confidence in the outlook for the Company.
· Free cash flow4 $204.0m (2013: $209.0m), 84.6% of adjusted EBITA (2013: 108.0%).
· Net debt of $93.1m as at 31 December 2014 (31 December 2013: $33.0m net cash). Since the completion of the acquisition of Aurora Networks, Inc. ("Aurora Networks") for a headline consideration of $310m on 6 January 2014, net debt has been reduced by $186.1m (66.7%).

Operating highlights
· Increased operating profit through top-line growth due to the Aurora Networks acquisition, improved revenue mix, supply chain efficiency and increased operational efficiency.
o Increased profitability in underlying business (excluding the Networks business) on lower revenue.
o Strong trading in the Networks business; $264.6m revenue, $47.4m adjusted EBITA contribution.
· Further progress made against the Strategic Plan laid out in November 2011:
o Continue to transform core economics:
§ Underlying operating costs5 reduced by $19.3m (7.4%) whilst continuing to invest in growth opportunities.
§ Application of Pace efficiency and effectiveness principles to the Networks business enabled targeted cost and working capital synergies to be achieved ahead of plan.
§ Third consecutive year of strong free cashflow to EBITA generation; aggregate free cash flow of $595.7m over last three years due to continued focus on working capital and cash management.
o Maintain PayTV hardware leadership:
§ Reconfirmed as the market leader in PayTV hardware; global number one in Media Servers6, Set-top boxes ("STBs")7 and Advanced Telco Gateways8.
§ Record PayTV Consumer Premise Equipment ("CPE") revenue in H2 2014 only partially offset a weaker H1 2014 resulting in a 4.8% revenue decline to $2,243.2m (2013: $2,355.4m).
§ Wins achieved and a record number of project launches delivered across all regions with key customers including AT&T, BeIn Sports, Comcast, Liberty Global and Net Brazil.
o Widening out:
§ 231.1% increase in non-CPE revenue (2013: 5.4% increase) to $376.8m (2013: $113.8m) due to the contribution of the Networks business.
§ Strong year for Networks due to robust customer demand which is expected to continue into 2015.
§ Built on the momentum of 2013 with a number of key wins across all areas of our software and services offerings with key customers including Foxtel, TDS Telecom, Frontier Telecom and Viva Broadcast.

more....

JP Morgan Cazenove Overweight 363.45 444.00 457.00 Reiterates

Liberum Capital Hold 363.45 390.00 390.00 Reiterates

Interim Management Statement

Recommended Combination of Pace and ARRIS

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