Stocks/Earnings

Video Losses Improve at Comcast

Operator sheds 4K video subs in Q2, best second quarter in more than a decade 7/27/2016 8:03 AM Eastern

Comcast continued to build subscriber momentum in the second quarter, shedding 4,000 video customers in the period, a performance that was in part helped by a six-week strike at rival Verizon Communications.

 

It was the best second quarter video customer showing at the company in more than 10 years and solidly beat some analyst estimates of losses of about 10,000 customers. High speed data addition in the period were about 220,000, Comcast's best Q2 in eight years.

 

Comcast and other cable operators were expected to be helped by the six-week strike by Verizon employees beginning in April. As a result of that work stoppage, which was resolved in late May, Verizon lost 13,000 Internet customers and 41,000 video subscribers in the second quarter.

 

"Our Cable subscriber and financial performance during the quarter was outstanding," Comcast chairman and CEO Brian Roberts said in a statement.  "We more than tripled our customer relationship net additions, with our best second quarter Internet customer results in eight years and our best second quarter video customer results in over ten years, and we successfully balanced this with strong operating cash flow growth. Despite an expected difficult comparison to last year's record second quarter film slate, NBCUniversal achieved solid results, driven by strength in our TV businesses and Theme Parks, which benefitted from the successful opening of The Wizarding World of Harry Potter in Hollywood. I am excited about the opportunities ahead for our company as we work together to bring people incredible technology, and memorable experiences, and there is no better example than the Olympic Games. The entire organization is gearing up to deliver the most comprehensive and innovative Olympics coverage in history starting next week, which will showcase the incredible breadth of NBCUniversal together with Comcast Cable and the X1 platform.”

 

At the cable systems, revenue rose 6% to $12.4 billion and cash flow increased 5.7% to $5 billion. At NBC Universal, revenue fell 1.8% to $7.1 billion and cash flow was stable at $1.7 billion. Cable networks revenue rose 4.7% and cash flow was up 8.3% in the quarter

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