Broadband Growth Boosts Comcast -- WSJ
October 26 2018 - 2:02AM
Dow Jones News
By Benjamin Mullin
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (October 26, 2018).
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.
On an earnings conference call Thursday, Chief Executive Brian
Roberts said that the acquisition of Sky supports Comcast's
existing business and increases its value.
"We think Sky is an incredible and unique standalone business
that fits perfectly with Comcast," Mr. Roberts said.
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-TV subscribers for 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 had
benefitted from the success of "Despicable Me 3."
Mr. Roberts said on Thursday that Comcast is evaluating ways to
expand in the streaming business and added that the economics of
streaming are "very challenging," noting that the company was
focused on nurturing its existing TV business.
This summer, Comcast lost a bidding war to Walt Disney 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 26, 2018 02:47 ET (06:47 GMT)
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