Comcast Corporation posts better-than-expected first-quarter profit
The largest US cable operator, Comcast Corporation has posted better-than-expected first-quarter profit, as a result of strong growth in its high-speed Internet and business services.
On Monday morning, Comcast's shares went up by about 2% in pre-market trading after closing at $58.41 on Friday on the Nasdaq.
In the last quarter, Comcast increased its stock buyback program to $10 billion. The cable operator said that it would now earmark $6.75 billion for 2015, which is higher as compared to the $4.25 billion that it had previously set aside for the year.
Last month, Comcast abandoned its proposed $45 billion merger with Time Warner Cable Inc.
On Monday the cable operator said that its total revenue has shown 2.6% rise to $17.9 billion in the quarter ended March 31.
Net income attributable to Comcast has also shown 10% rise to $2.1 billion, or 81 cents per share, from a year earlier.
Comcast has got 79 cents per share profit after excluding items, including investments and acquisition-related items. According to Thomson Reuters I/B/E/S./, this beat analysts' were estimating 74 cents per share.
The company said that it has lost 8,000 subscribers from January through March, as compared to the 24,000 additions a year earlier. It added video customers last quarter.
As pay TV operators have been fighting to keep customers amidst intense competition from streaming video services, Wall Street is keeping a close watch on the number of new video subscribers.
The number of Comcast's high-speed internet customers has shown 6.2% rise to 407,000. Revenue from that business has gone 11% up, reaching to $3.04 billion, which is the highest growth rate in four years. Business services revenue has also went up by 21.4% to $1.11 billion.
At NBC Universal, revenue has shown 4% fall to $6.6 billion as compared to a year earlier, when it benefited from the 2014 Sochi Olympics. NBC Universal revenue would have increased about 8%, if the Olympics and the 2015 Super Bowl are excluded.
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