Video services

Comcast Loses Video Subs, Profits Surge

Comcast Corp. (Nasdaq: CMCSA, CMCSK) lost 238,000 video customers in the second quarter, but it still managed to boost its net profits by 15.6 percent thanks to solid overall performance of its cable division and at the recently acquired NBCUniversal LLC .

The nation's largest MSO reported net income of $1.02 billion, or 37 cents per share, on revenues of $14.3 billion. That's up from a profit of $884 million, or 31 cents per share, reported a year earlier.

After one-time costs (including transaction charges related to the NBCUniversal acquisition and an income tax charge) Comcast's profit was 42 cents per share. Analysts polled by Thomson Reuters expected a profit (after one-time costs) of 41 cents per share on revenues of $13.7 billion.

Comcast, continuing a weak second-quarter trend that has affected all MSOs, lost 238,000 basic video customers during the three months to the end of June, giving it a new total of 22.53 million. (See Charter Suffers Further Video Subs Losses .)

It more than made up for it by adding 144,000 high-speed Internet customers, taking its total to 17.55 million, and 193,000 voice subs to take that total to 9.06 million.

Its business services unit remained a bright spot, posting $435 million in revenues, a 41.7 percent year-over-year increase.

— Jeff Baumgartner, Site Editor, Light Reading Cable

comtech3 12/5/2012 | 4:57:09 PM
re: Comcast Loses Video Subs, Profits Surge

Mmm.wither Veriozon Fios.They're not gaining those customers from Comcast as lstudies have shown that a large percentage of those video customers are college grads leaving campuses,or customers who are cutting back on their expenses.

Jeff Baumgartner 12/5/2012 | 4:57:08 PM
re: Comcast Loses Video Subs, Profits Surge

Yep, Q2 is notorious for seasonality, as you mentioned. But competition and the economy also factor in, too. I wonder at what point does a FiOS TV or U-verse also feel the pinch too (as in, actual video sub losses versus just a slowdown compared to the previous quarter) when the college kids go home and retired folks switch things off as they head to their  summer abodes.  JB

comtech3 12/5/2012 | 4:56:57 PM
re: Comcast Loses Video Subs, Profits Surge

I'm not yet privy to Verizon FIOS 2Q earnings,but I do know that the union is breathing down there neck,and the company is set for another round of lay-offs.The bright spot is their wireless service,which seems to be holding its own,and have finally paid dividens to Vodafone that they were not able to pay for years.

Sign In