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Video services

Comcast Slows Video Losses, Grows Internet Subs

Comcast Corp. (Nasdaq: CMCSA, CMCSK) profits rose in the third quarter, but the world's largest MSO couldn't avoid the loss of more video subscribers.

Comcast lost a better-than-expected 165,000 video subs in the period, an improvement on the 275,000 it shed a year ago, giving it a total of 22.36 million.

Like other MSOs, Comcast's high-speed Internet business was solid as it added 261,000 cable modem subs. But voice continued to show signs of slowing as Comcast added 133,000 telephony customers in the quarter, versus 257,000 in the year-ago quarter.

Comcast added 229,000 net combined video, high-speed Internet and voice subs in the period, versus 202,000 a year ago.

Comcast reported net income of US$908 million, or 31 cents per share, on revenues of $14.3 billion. This compares with a profit of $867 million, or 31 cents per share, on consolidated revenues of $9.5 billion from the year-ago quarter, numbers that did not factor in results from the recently acquired NBCUniversal LLC .

Analysts were expecting third-quarter earnings of 40 cents a share.

Comcast's business services arm saw third-quarter revenues jump 39.4 percent to $464 million.

— Jeff Baumgartner, Site Editor, Light Reading Cable



msilbey 12/5/2012 | 4:49:56 PM
re: Comcast Slows Video Losses, Grows Internet Subs

It used to be the case that margins on data services were a lot higher than on video services. I wonder if that's still true given growing capacity needs and greater network utilization. 


Regarding video losses- I still think the trend will bottom out at some point given cable's content advantage. Internet services is the bigger growth market at the moment, but there's still a lot of value in video.

craigleddy 12/5/2012 | 4:49:51 PM
re: Comcast Slows Video Losses, Grows Internet Subs

Good question. It seems the onslaught of Netflix streaming and other high-capacity usage could take some of the bloom off the rose of high profit margins for high-speed Internet service.      


Still, by most accounts high-speed Internet still pulls in much better margins than good ol' cable TV. That's largely due to the high cost of programming license fees and the relatively low bandwidth requirements for cable broadband versus analog and MPEG video.


With video subscriptions in decline and broadband chugging along, it's no wonder that Glenn Britt of Time Warner Cable has designated broadband as that MSO's "anchor service."


 


 

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