Biz good for Comcast

Company's profit came in at $460 million

Country’s largest cable operator had a sparkling three months — and Wall Street couldn’t get enough.

Comcast announced on Thursday that it had jumped profit in the second quarter by 7%, largely on increased consumer adoption of its triple play, or bundled phone, mobile and cable services.

Stock spiked by 5% on the news.

Company’s profit came in at $460 million, about where analysts expected, while revenue, which climbed 11% to $6.23 billion, came in above expecta-tions.

Earlier this year the company had been criticized by analysts who said that growth of the bundled services wasn’t happening quickly enough, particularly on the phone side, after Comcast disclosed a first-quarter profit slide.

Triple play generally runs on nar-row margins, but it’s seen as essential by many observers if cable is to hold off encroachments by telcos into the television biz.

Comcast topper Brian Roberts em-phasized the growth of the phone biz in a call with analysts, noting the 306,000 subs who had come aboard during the quarter, pushing phone revenue to $214 million.

The broadband part of the package, meanwhile, drew revs of $1.21 billion.

Both phone and video saw signifi-cant double-digit gains on a year earlier.

Still, phone revenue is a small part of most cable operators’ business, though it comprises a much larger portion of their revenue pie than video does for telcos.

Investors also continue to be buoyed by the imminent closure of the cabler’s deal to take over portions of Adelphia’s footprint.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading