Cable subscriptions fall, but Comcast profits soar
NEW YORK – Comcast is reporting a stronger-than-expected second-quarter profit even as it struggles to keep cable TV subscribers.
On Thursday, the company reported a 22 percent jump in earnings to $3.22 billion, or 69 cents per share. Earnings, adjusted for non-recurring gains, were 65 cents per share, which, according to a survey by Zacks Investment Research, was 4 cents better than expected.
Revenue rose 2.1 percent to $21.74 billion in the period, just short of expectations. The company added 260,000 high-speed internet customers during the quarter, though it has been struggling overall as it lost 140,000 video customers.
The mixed quarterly results follow the Philadelphia-based company’s decision last week to drop its $66 billion bid for Fox’s entertainment business. The Walt Disney Co. had topped that offer with $71 billion as part of a bidding war. The move freed Comcast to focus on its other potential acquisition, European pay TV operator Sky, a deal that would help the Philadelphia-based cable and media company expand beyond the U.S.
Last week, Comcast made a bid that values Sky at $34 billion, topping $32.5 billion offered by21st Century Fox.
Cable and telecom companies have been buying the companies that make TV shows and movies to compete in a changing media landscape. Although internet providers such as AT&T and Comcast directly control their customers’ access to the internet in a way that Amazon, YouTube and Netflix do not, they still face threats as those streaming services gain in popularity.
Other recent deals include AT&T’s buyout of Time Warner last month for $81 billion.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CMCSA at https://www.zacks.com/ap/CMCSA