Comcast Earnings Preview: Xfinity Mobile To Remain In Focus As Comcast Looks To Strengthen Its Hold On Wireless

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Comcast (NASDAQ:CMCSA) will report its Q2’17 earnings on July 27th. Comcast had a strong start to the current fiscal year as its consolidated revenue grew by 89% and adjusted EBITDA grew by 10.4%. The cable communication company’s revenue growth was led by X1 platform bundling play, whereas NBCUniversal’s revenue surge was caused by strong performance in the filmed entertainment division, and an increase in traction to the theme park business.

While cord cutting is likely to weigh on Comcast’s revenues, the double and triple bundling play will continue to offset these declines as the customers prefer to buy a package over a single service. The ad revenues may continue to feel the brunt of reduced political advertising as compared to the same period last year.

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Xfinity Mobile Will Remain In Focus

In Q2, Comcast released Xfinity Mobile, which is America’s first wireless service that focuses on wifi connectivity with over 16 million wifi hot-spots installed all over the country. Xfinity mobile automatically connects to the nearest wireless services to provide uninterrupted data service. The consumers can either chose unlimited data option at $65 per month for five lines, or can pay per gigabit of usage, which will cost $12 per gigabit.

Given that high-speed internet volume consumption is surging at an ever increasing pace, rollout of Xfinity mobile can further boost the high speed internet revenues of Comcast which grew by 10% in Q1 to reach $3.6 billion.

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