Comcast Slows Video Subscriber Losses
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Comcast, the No. 1 U.S. cable company awaiting regulatory approval to buy No. 2 Time Warner Cable, reported profit that beat estimates as new high-speed internet customers more than made up for for declining video subscribers.
Third-quarter earnings were 73 cents a share, excluding tax adjustments and acquisition-related expenses, Comcast said today in a statement. That topped the 71 cents that analysts projected on average, according to estimates compiled by Bloomberg. Revenue rose 4% to $16.79 billion, just shy of the $16.81 billion estimated by analysts.
Cable operators like Comcast are relying more on broadband users for revenue growth as new TV subscribers are harder to come by. More content is being offered via online services like Netflix and HBO’s upcoming online subscription, encouraging cable customers to cut the cord. The increasing reliance on broadband sign-ups is helping boost profit margins, according to David Heger, an analyst at Edward Jones & Co.
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