Cable Technology Feature Article
Comcast: Profits on the Rise
By Nick Ruble, TMCnet Contributing Writer
Comcast (News - Alert) has just reported its results for Q2-12, which show a steady 32 percent increase from the first quarter. Less video customers have been unsubscribing, and telephone and broadband subscribers have been on the rise.
From this solid increase in profits, the company’s net income has risen from 37 cents per share to 50 cents per share, setting the total yearly earnings at $1.35 billion.
Satellite television providers, high-speed fiber network providers and online video streaming services, like NetflixandHulu, have pushed Comcast to step things up a notch with boosted Internet speeds, added telecom features and a revamped video guide.
Comcast also made the decision to purchase back $750 million of its own shares, paying out $438 million in dividends this quarter and rising 3.1 percent to $33.55.
Craig Moffett of Sanford C. Bernstein & Co., explained, “Cable distribution is a cash machine, and Comcast used that cash to continue to buy back shares that we believe remain attractively valued.”
As with any kind of service provider, there will always be a number of customers dropping their subscription each year. Last year, Comcast lost 238,000 subscribers, while this year that number tapered off to a much more reasonable 176,000.
Of the 75 percent of customers signing up for at least two services, 40 percent purchased the triple-play television, Internet and voice package. Total revenue is up eight percent, at $148.57 per customer.
“We’re getting better products out there. We’re targeting our marketing better,” said president and chief executive officer at Comcast, Neil Smit.
Even though Battleship wasn’t exactly successful at the box office, revenue at NBC Universal (News - Alert) only dropped 0.8 percent, setting the average earnings to $5.5 billion, which lead to an overall loss of $83 million in filmed entertainment.
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Edited by Brooke Neuman