Comcast the promise of media and broadband growth
Comcast
said that NBCUniversal media unit and high-speed internet business increased growth in the fourth quarter.
The company also increases its annual dividend 10% to 84 cents per share.
Overall, Comcast's revenue increased by 5.2% from the previous year to $ 28.3 billion, as the effect of the acquisition of pay-TV operator Sky PLC is included in.
The value of the Philadelphia-based company shrank to $ 2.51[ads1] billion, or 55 cents per share, from $ 15 billion, or 3.17 cents per share in the quarter last year, as earnings were up by a one-time tax advantage. With the exception of the previous tax benefit, Comcast revenue increased by 36% to 64 cents per share.
The results exceeded estimates from analysts surveyed by FactSet, which estimate a $ 27.55 billion revenue and a 62 cents per share revenue adjustment.
Comcast continues to lose traditional pay-TV subscribers, but with a lower frequency than some peers. The company reduced its subscriber loss to 29,000, compared to 33,000 a year earlier.
Broadband operations increased revenues of 351,000 during the period and increased revenue by 10.1%.
Income in the NBCUniversal Department, which houses several TV networks and Universal film and television studio, jumped 7.1%. Adjusted revenues more than doubled on the television, driven by growth in forwarding costs and advertising revenue.
Comcast's NBCUniversal unit earlier this month announced plans to launch an ad-supported streaming service into a field that has become increasingly crowded.
On a revenue interview on Wednesday, CEO Brian Roberts said the streaming service would distinguish itself through a "light" advertising load and original programming.
"We believe we can generate significant value with this service over time, by increasing our content revenue, enhancing the value of pay-TV, becoming a leader in targeted digital streaming, and expanding our reach through direct customer relationships," says Mr. Roberts
Comcast's emerging wireless business, Xfinity Mobile, continues to grow, although it remains profitable on a stand-alone basis, while Xfinity Mobile added 227,000 net subscribers in the fourth quarter of 2018, bringing together a total of 1.2 million lines with a loss of $ 191 million in the fourth quarter.
Comcast said it would start reporting Xfinity Mobile as part of the cable segment. "19659007]" We are very pleased with this performance in the mobile so far and the value it adds to the bundle and is on the right track to reach our primary goals, including the positive stand-alone economy, "Roberts said.
Comcast has also published financial results for its Sky Unit for the first time ng since it bought the European pay-TV company last October. Sky revenue rose 5.6 percent from the same period last year to $ 5.02 billion in the fourth quarter of 2018, with $ 3.98 billion from direct consumer services, such as broadband and pay-TV subscriptions.
The cable industry is undergoing a major transformation, as more Americans cut the lead on their cable subscriptions and stream to streaming services such as Hulu and Netflix. So how did we get here? Illustration: Shaumbe Wright / WSJ
Write to Benjamin Mullin at Benjamin.Mullin@wsj.com
Corrections and Reinforcements
Comcast increases its annual dividend 10% to 84 cents per share. An earlier version of this article incorrectly said it was quarterly dividends. ( Jan. 23, 2019 )
