Comcast Earnings: Cable Communications Offsets Universal Slump

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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.

CMCSA earnings part 1

CMCSA eanrings part 2

Have more questions about Comcast? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Comcast
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