Comcast registered more cable TV subscribers!
Cable Television Colossus Comcast Corporation has reported 32,000 gained on its cable TV subscribers as well as revenue of $1.6 billion from its broadcast of the Rio Summer Olympics. They also reported an increase of 330,000 on high-speed internet customers bringing its total current customers to over 28 million. Ramous indicate that the AT&T’s $85.4 billion deal to acquire the Time Warner, is likely to prompt Comcast to acquire small companies such as T-mobile or Sprint to achieve the same kind of scale. However, Comcast has made more acquisition as compared to its competitors over the last few years. For instance, they bought out NBCUniversal in 2011 and DreamWork Animation last summer.
The main Hollywood player, NBCUniversal, posted higher operating cash flow with a higher profitability metric of $2.15 billion, as compared to the previous year where they posted an operating cash floor of $1.66 billion. This is about 31.5 percent improvement from the previous year period and about 19.2 percent when the recent 51% acquired a stake in Universal Studio Japan is included. The summer Olympic, as well as the rise in the number of cable TV subscribers, are attributed to the improvement of the broadcast. The theme park profitability also improved as the film unit posted a higher operating cash flow by 6.1% from 2015.
Theme Parks gained a 60.6 percent in revenues to $1.4 billion-mark or 16.1 percent the Japan deal is adjusted. This reflects a higher attendance as well as higher per-capita spending, resulting from the opening of the Wizarding World in Hollywood. It is also attributed to a positive impact of a stronger Japanese Yen.
Time Warner Cable also seems to be doing well in the market and is likely to bring more completion shortly. However, the Comcast CEO reported that the company is healthy regarding financial and assets and they are working closely with their partners to improve the company. Perhaps they could have used the last year’s chance to take over the Time Warner Cable and remain the only giant in the industry. Comcast left that opportunity in early 2015 and instead to fought the federal regulators who were set such as massive merger.
The NBCUniversal revenue exceeded the expectation of Wall Street analyst as the revenue rise by 28 percent to hit over $9 billion-mark. Even if the Olympic revenue is excluded, the company will still have boasted a profit of 5.7 percent as compared to the third quarter of 2015. Network and theme parks units posted strong results, with broadcast the cable television network improvement being attributed to the Rio Olympics. The theme park has received more visitors who are attracted by the new Harry Potter attraction at Los Angeles-area Park.
The Universal Picture performance went down by about 8 percent, as compared to the last year’s revenue. It generated a total of 1.8 billion in the last upper quarter. This is attributed to various challenges that the sector faced in the third quarter. On the other hand, the Universal studio profited the investor by 6 percent bringing in revenue of $353 million. The company, however, reported that they are happy with the performance of the third-quarter.
The overall Comcast profitability went up by $2.24 billion, which is 12.1 percent as compared with the last’s year’s third quarter results. The profit per share for the third upper quarter is estimated at 92 cents per share, which make the company the best in Wall Street estimates. The total Comcast’s revenue rose by 14.2 percent, totaling up to $21.3 billion. Consolidated operating income grew by 11 percent to $4.4 billion.
The Philadelphia Company is now planning to partner with Verizon Wireless and introduce a branded wireless phone service in the mid-2017. The wireless service is expected to be available to customers in various company service areas such as San Francisco, Philadelphia, Sacramento, Denver, and Chicago. Various wall street analysts have express frustration about the announcement that industry leader is planning to buy a phone company the Wall Street support for such as deal in general.
Moffett, one of the Wall Street’s analysts, said that most thought that the acquisition of AT&T’s was a mare diversification but the compunction that follows suit makes the Comcast unpredictable. According to Moffett, it could have been wiser to wait and check whether the AT&T’s deal will gain acceptance in Washington before entering into another deal. However, with more customer base due its increase in the number of Cable TV subscribers and its expansion due to the acquisition, the company is projected to bring even more positive results in future.