News Column

Comcast Posts Solid Profits

Aug. 1, 2012

Bob Fernandez

comcast

The movie flop Battleship pounded the profits at NBCUniversal's Hollywood studio unit but Comcast Corp.'s cable division produced a solid second quarter with the biggest revenue gains in its business and residential-Internet services.

Second-quarter revenue on a pro forma basis at Comcast, the nation's largest pay-TV operator, rose 3.5 percent to $15.2 billion and net income jumped 32 percent to $1.35 billion when compared with the year-ago quarter. The year-ago quarter included a one-time tax-related charge of $137 million.

The second quarter traditionally has been a weak period for Comcast with subscriber additions because of people with vacation homes canceling their cable-TV service for the summer. The company shed 176,000 cable-TV subscribers this year, compared with losing 238,000 in the year-ago quarter.

Comcast added 156,000 high-speed Internet customers in the quarter, compared with adding 144,000 Internet customers in the prior-year period.

Revenue and profits declined at NBCUniversal in the second quarter because of the movie studio, higher programming costs in the cable-networks division and a difficult comparison with the year-ago period when NBCUniversal benefited from a rights deal with Netflix.

"NBCUniversal's second quarter performance came in as anticipated, and we continue to be very positive about our opportunities to build value across all the NBCUniversal businesses," Brian Roberts, chief executive officer and chairman at Comcast, said in a statement released with the earnings. "Comcast Cable and NBCUniversal are also working well together to launch innovative products and experiences -- and these efforts are being showcased now as we utilize all of our content and technology platforms to deliver the most comprehensive Olympics coverage ever."



Source: (c)2012 The Philadelphia Inquirer. Distributed by MCT Information Services


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