Comcast Corp. on Monday reported better-than-expected profit and
revenue growth in its first quarter, as its broadband division
logged its strongest revenue growth in more than four years.
Shares gained 2.4% in premarket trading as the company also
announced it will spend another $2.5 billion buying back shares
this year.
Last month, Comcast walked away from plans to acquire Time
Warner Cable Inc., as increasing pressure from regulators prompted
the end of the $45.2 billion deal.
The deal had promised to reshape the media landscape-forcing TV
channel-owners and other pay-TV operators to contemplate their own
mergers. Companies across the industry are now reassessing their
calculations in the wake of its failure.
For the quarter ended March 31, Comcast reported a profit of
$2.06 billion, or 81 cents a share, up from $1.87 billion, or 71
cents a share, a year earlier.
Excluding items, adjusted profit was 79 cents a share. Revenue
grew 2.6% to $17.9 billion.
Analysts surveyed by Thomson Reuters projected a per-share
profit of 74 cents on $17.4 billion in revenue.
In the latest quarter, the company showed improvements in its
broadband subscriber results, adding 407,000 subscribers compared
with additions of 383,000 a year ago. Comcast said the results were
its best in two years.
But the company lost 8,000 video subscribers, compared with
additions of 24,000 a year ago.
Voice subscriber additions slowed to 77,000 from 142,000
additions a year ago.
Comcast saw its broadband revenue grow 10.7%, while voice
revenue fell 1.5%. Business services revenue jumped 21.4%.
Overall, at the company's cable business, which accounts for the
bulk of the top line, revenue grew 6.3% to $11.4 billion.
Total revenue at NBCUniversal fell 4% to $6.6 billion. Excluding
last year's Olympics and this year's Super Bowl, revenue would have
been up 7.9%.
Comcast also said Monday that it plans to repurchase an
additional $2.5 billion in stock during 2015, bringing its total
2015 share-buyback plan to $6.75 billion.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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