SKY Sky

By Benjamin Mullin 

Comcast Corp. on Thursday said net profit rose 9.3% in the third quarter, as growth in the content and distribution giant's broadband business more than offset a continued decline in cable-TV subscriber numbers.

The Philadelphia-based company last month secured control of European pay-TV giant Sky PLC for $38.8 billion, in a deal that Comcast said would help it diversify its revenue base beyond the U.S., where cable cord-cutting is taking a toll on the traditional TV business.

Comcast reported a net profit of $2.89 billion, or 62 cents a share, up from $2.64 billion, or 55 cents a share, in the year-earlier quarter. Revenue increased 5% to $22.14 billion.

Comcast added 363,000 internet consumers in the period, up 70% from a year earlier, but lost 106,000 cable subscribers, its sixth straight quarter in decline. Broadband revenue grew 9.6%, while video declined 2.9%.

Revenue at Comcast's NBCUniversal unit rose 8.1% to $8.63 billion, propelled by growth from its cable networks and broadcast television businesses. Those increases helped offset a revenue decline in the company's theme-park division, which it said was affected by bad weather at Universal Studios Japan. The profitability of its filmed-entertainment division was down compared with the year-earlier period, which the company said benefitted from the success of "Despicable Me 3."

This summer, Comcast lost a bidding war to Co. for Fox's entertainment assets. Disney agreed to pay $71 billion for Fox's famed Hollywood studio and international assets. If Fox had won the September auction for Sky, Disney would ultimately have taken 100% control of the British pay-TV company. Instead, Fox last month agreed to sell its 39% stake in Sky worth roughly $15 billion to Comcast.

(END) Dow Jones Newswires

October 25, 2018 06:46 ET (10:46 GMT)

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