Comcast beats expectations in Q3, with broadcast/cable net revenue spike
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Michelle Clancy
| 26 October 2018

US cableco Comcast has seen third quarter 2018 profits cable networks and broadcast TV profit spike by 5.6%, but parent NBCUniversal’s suffered due in part to weakness in its studios business.

For the quarter ended 30 September 2018, the media giant saw net income rise 9.3% year-on-year to 2.9 billion, or 62 cents a share, from $2.6 billion, or 55 cents a share, a year ago. Revenue increased 5% compared with Q3 2017 to $22.1 billion. Overall, both earnings and revenues were above Wall Street expectations.

Breaking it out by segment, NBCU revenue increased 8.1% in the quarter to $8.6 billion; but its adjusted earnings before interest, taxes, depreciation and amortization fell 8.5% to $2.066 billion.

In contrast, cable network earnings were up 6.9% to $968 million; revenue saw an impressive 10.8% growth to reach $2.884 billion. Ad revenue was up 4.2%, and distribution revenue climbed 9.5%.

Broadcast TV earnings, encompassing the NBC network and Telemundo, gained 1.8% to $321 million on a 15.4% revenue increase. Ad revenue jumped 9.2%, mostly thanks to Telemundo’s broadcast of the World Cup .

Also in broadcast, distribution and other revenue rose 23.9% due to higher retransmission consent fees.

On the cable MSO side of the house, residential video customers fell 1.7% to a little below the 21 million it clocked a year ago. Video revenue fell 2.9% to $5.6 billion; but high-speed internet revenue rose 9.6% to $3.9 billion. Business services revenue grew 10.6% to $1.8 billion.

Comcast CEO Brian Roberts said that the company saw its highest cable earnings growth in six years, the most broadband subscription additions in a third quarter in ten years; meanwhile, NBC was the No 1 network in prime time ratings for the 2017-18 season. Going forward, he said he was excited about the Sky acquisition.

“Our recently completed acquisition of Sky is transformative for our company, helping create a unique global leader in media, technology, television and broadband,” he said.