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Comcast: Higher Q2 Profit Lifts Shares

It added more Internet and telephone subscribers than predicted


Comcast (NASDAQ:CMCSA) announced that it earned $1.35 billion during the second quarter, up from $1.02 billion in the same period last year.

The cable and media giant recorded revenue of $15.21 billion, up 6.1% from 2011.

For the quarter, EPS was 50 cents, up from 37 cents last year. That topped the 48 cents Wall Street had been looking for, Reuters noted.

Investors liked the news, sending Comcast shares up more than 3% in early Wednesday trading.

The company also signed up more customers for its Internet and phone services than expected. Comcast attracted 156,000 new subscribers to its high-speed Internet service and 158,000 subscribers to its telephone service, well above the 97,000 new Internet subscribers and 143,000 new telephone subscribers that analysts had predicted.

Last month, Comcast unveiled its Xfinity Platinum super-high speed Internet service, priced $299.95 a month, and meant to compete with Verizon‘s (NYSE:VZ) high-speed service. The 305 megabits-per-second service will roll out first in a limited number of cities including Boston, Pittsburgh, Baltimore and Washington, D.C.

However, the company lost 176,000 subscribers to its TV service during the quarter, which matched analysts forecasts.

Comcast also recorded diminished results at its media units. Operating cash flow at NBC Universal fell 15.4% on slightly lower revenue. Universal Studios continued to struggle after moviegoers sank its big-budget summer blockbuster “Battleship,” while NBC’s broadcast channels saw their revenue fall 9%.

Article printed from InvestorPlace Media,

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