The Canadian Press - ONLINE EDITION

Comcast 2nd-quarter earnings top Wall Street as Internet hookup pace accelerates

  • Print

PHILADELPHIA - Comcast's second-quarter net income rose 15 per cent to nearly $2 billion as it added high-speed Internet customers at a faster pace and video subscriber losses moderated.

The nation's largest cable provider topped Wall Street estimates and shares edged up in afternoon trading.

The nation's largest cable provider said Tuesday that net income rose to $1.99 billion, or 76 cents per share, up from $1.73 billion, or 65 cents per share, a year ago.

Excluding a gain on its sale of a stake in set-top box maker Arris Group Inc. and other items, Comcast posted adjusted earnings of 75 cents per share, beating the 72 cents expected by analysts polled by FactSet.

Revenue grew nearly 4 per cent to $16.84 billion, short of the $16.95 billion that analysts were looking for. Revenue a year ago was $16.27 billion.

Jefferies & Co. analyst Mike McCormack said the quarter was healthy as cable continued to perform well and NBC Universal grew more profitable.

Cable hookup revenue, up 5 per cent at $11.03 billion, was slightly better than expected, but NBCUniversal revenue, flat at $6.02 billion, was less than analysts predicted.

Comcast Corp. is in the midst of a regulatory review of its proposed $45.2 billion acquisition of No. 2 cable company Time Warner Cable Inc. Comcast CEO Brian Roberts said in a call with analysts that the FCC began a 180-day review period on July 10, and the company expects to have a shareholder vote on the acquisition in the fall.

The company added a net 203,000 Internet customers since the last quarter, bringing the number to 21.3 million. That's 8 per cent more than it added in the same period a year ago.

It lost 144,000 video customers, ending up with 22.5 million. The video losses broke two quarters of gains, but the company said it was largely due to the seasonal pattern of college students leaving school and vacationers from Canada disconnecting before heading back up north. The losses were not as bad as the 162,000 it lost in the same period a year ago.

The average customer bill rose 4.5 per cent to $137.24 per month after 2 per cent price hike at the beginning of the year. Customers were also adding more services and business client revenues rose.

At NBCUniversal, advertising revenue fell 2 per cent to $2.19 billion. The talent show "The Voice" aired earlier than usual in the season to benefit from following the Winter Olympics, which reduced the number of hours it was aired during the second quarter.

Film revenue fell 15 per cent to $1.18 billion, but operating profit rose compared with a year ago when it spent heavily to launch the films "Fast & Furious 6" and "Despicable Me 2."

Free cash flow at Comcast fell 41 per cent to $1.16 billion as it spent money shipping more of its latest-generation set-top boxes and prepared for a big box office year in 2015 with films like "Jurassic World," ''Ted 2," and "Fifty Shades of Grey."

Comcast shares rose $1, or 1.9 per cent, to $54.82 in afternoon trading.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Jets This Week: Predicting the line-ups

View more like this

Photo Store Gallery

  • PHIL HOSSACK / WINNIPEG FREE PRESS 060710 The full moon rises above the prairie south of Winnipeg Monday evening.
  • A water lily in full bloom is reflected in the pond at the Leo Mol Sculpture Garden Tuesday afternoon. Standup photo. Sept 11,  2012 (Ruth Bonneville/Winnipeg Free Press)

View More Gallery Photos

Poll

Do you think the Jets' three pre-season losses in a row are a sign of things to come?

View Results

View Related Story

Ads by Google