Comcast adds 25,000 cable subs in Q2
April 22, 2014
Comcast reported increasing subscription numbers for its cable service for the second consecutive quarter, defying fears of so-called cord-cutters.
The company saw an improved performance thanks to its NBCUniversal unit, growth in its business services division and the performance of its high-speed Internet group.
Pay-TV operators are increasingly fretting about cord-cutting, particularly among younger viewers who may be deterred from taking out an expensive cable subscription in favour of cheaper online alternatives, such as Netflix or Hulu. However, Comcast added a net 25,000 subscribers during the quarter. It also scored with its line-up of programming at NBCUniversal. Its Universal movie studio also had a good quarter, aided by the box office performance of hit movies such as Lone Survivor and Ride Along.
Advertising revenues at NBCUniversal almost doubled, thanks to the impact of the Winter Olympics, which the network broadcast exclusively in the US. NBCUniversal, which also owns a portfolio of cable channels, generated total revenues of $6.88 billion, compared with $5.34 billion in the comparable quarter.
Excluding the Winter Olympics, NBCUniversal revenues were up 8 per cent to $5.77 billion.
Across Comcast, revenues increased from $15.3 billion to $17.4 billion while net income rose from $1.43 billion to $1.87 billion.