SOUTHPORT, Conn. - Diamond Sports Group, a key player in regional sports broadcasting, has solidified its partnership with Charter Communications , Inc (NASDAQ: NASDAQ:CHTR), ensuring continued access to local sports content for Charter's Spectrum TV Select Plus subscribers. The multi-year renewal agreement, announced today, covers Diamond's portfolio of regional sports networks (RSNs), which broadcast live Major League Baseball (MLB), National Basketball Association (NBA), and National Hockey League (NHL) games, alongside pre- and post-game programming.
The renewed contract allows Spectrum TV Select Plus customers to stream RSN content through the Bally Sports app using their subscription credentials. Furthermore, for those without RSN channel access, Diamond's Direct-to-Consumer product will be available for purchase, including through Spectrum, offering local DTC content for teams with Diamond-held DTC rights.
David Preschlack, CEO of Diamond, expressed that the agreement is a significant step in the company's restructuring process and is aimed at establishing a sustainable, profitable business model. He anticipates the deal will benefit Diamond, Charter, and their associated sports teams and league partners, while continuing to deliver high-quality broadcasts to local sports enthusiasts.
Diamond Sports Group LLC, an independently-managed subsidiary of Sinclair Inc., operates the Bally Sports Regional Sports Networks. The company's 18 RSNs are the leading providers of local sports in the U.S., broadcasting nearly half of all U.S.-based MLB, NHL, and NBA teams' games. Diamond's RSNs produce over 4,000 live professional telecasts yearly, in addition to other local sports events and programs.
InvestingPro Insights
Charter Communications (NASDAQ: CHTR) has shown a commitment to enhancing shareholder value, with management aggressively buying back shares. This move underscores the company's confidence in its business model and future prospects, particularly as it remains a prominent player in the media industry, which is evident through its strategic partnership renewals such as the recent deal with Diamond Sports Group.
InvestingPro data reveals that Charter Communications holds a market capitalization of $44.52 billion, with a P/E ratio standing at 9.03. The adjusted P/E ratio for the last twelve months as of Q4 2023 is slightly lower at 8.8, which may attract investors looking for potentially undervalued stocks in the media sector. Despite a modest revenue growth of 1.08% over the last twelve months as of Q4 2023, the company's operating income margin of 22.51% indicates a strong ability to convert revenue into profit.
Investors should note that Charter Communications does not pay a dividend, which could be a consideration for those seeking income-generating investments. However, with analysts predicting profitability for the company this year and a solid performance over the last twelve months, Charter presents an interesting opportunity for growth-focused portfolios. For those looking to dive deeper, there are additional InvestingPro Tips available, including insights on the company's financial health and stock performance trends. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and unlock the full spectrum of analysis and data points on Charter Communications at https://www.investing.com/pro/CHTR.
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