Comcast Earnings: Cable Communications Offsets Universal Slump
Comcast (NASDAQ:CMCSA) managed to surpass expectations with its Q2 revenues and earnings, but revenue growth remained slow due to a significant fall in film entertainment revenues, partially offset by jump in theme park and broadcast television sales, as well as growth in cable communications segment. The growth in the cable segment was led by high-speed internet, where subscriber additions increased 22% year over year to 220,000. Even the video segment posted moderate growth, as subscriber losses were lower than anticipated at 4,000, which is incidentally Comcast’s best second quarter performance in 10 years.
Turning to the NBC segment, film revenues were down significantly due to some high profile flops such as “Warcraft” and “The Huntsman: Winter’s War”, which also remained a drag on Comcast’s bottomline. The significant increase in theme park revenues can be attributed to the inclusion of Universal Studios Japan and a rise in broadcast television revenues came from higher content licensing and advertising revenue.
Looking ahead, Comcast will rely on the high-speed internet segment to provide incremental revenues to its cable networks division with Pay-TV plateauing. For the full year, we expect the company to add close to 1.5 million internet subscribers and lose just 19,000 Pay-TV customers. The availability of Netflix on Comcast’s X1 may help the latter reduce subscriber loss to streaming services to a marginal extent due to the enhanced convenience for users.
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The following table provides an overview of the company’s earnings.
Have more questions about Comcast? See the links below:
- What’s Comcast’s Revenue & EBITDA Breakdown In Terms Of Different Products?
- What’s Comcast’s Fundamental Value Based On Expected 2016 Results?
- How Has Comcast’s Revenue Composition Changed In The Last Five Years?
- What Has Led To A ~70% Increase In Comcast’s Revenues & EBITDA In The Last Five Years?
- By What Percentage Can Comcast’s Revenues Grow Over the Next Five Years?
- How Are Comcast’s Revenue & EBITDA Composition Expected To Change By 2020?
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