CMCSA Comcast Corporation

NBCUniversal unit, broadband arm drive the quarterly growth; dividend to climb 10%

By Benjamin Mullin 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (January 24, 2019).

Comcast Corp. said its NBCUniversal media unit and high-speed internet business fueled growth in the fourth quarter.

The company also is raising its annual dividend 10% to 84 cents a share.

Overall, Comcast's revenue increased 5.2% from a year earlier to $28.3 billion, when the effect of its acquisition of pay-television operator Sky PLC is factored in.

Earnings at the Philadelphia-based company shrank to $2.51 billion, or 55 cents a share, from $15 billion, or $3.17 cents a share in the year-earlier quarter, when results were boosted by a one-time tax benefit. Excluding that year-earlier tax benefit, Comcast earnings rose 36% to 64 cents a share.

The results exceeded estimates from analysts surveyed by FactSet, which projected revenue of $27.55 billion and adjusted earnings of 62 cents a share.

Comcast continues to lose traditional pay-TV subscribers, though at a slower rate than some peers. The company narrowed its subscriber loss to 29,000, compared with 33,000 a year earlier.

The broadband business added 351,000 customers in the period and increased revenue 10%.

Revenue at the NBCUniversal division, which houses several TV networks and the Universal film and TV studio, jumped 7.1%. Adjusted operating earnings more than doubled at the broadcast-TV unit, driven by growth in retransmission fees and advertising revenue.

Comcast's NBCUniversal unit said earlier this month that it plans to launch an ad-supported streaming service, entering a field that has grown increasingly crowded.

On an earnings call Wednesday, Chief Executive Brian Roberts said the streaming service would distinguish itself through a "light" advertising load and original programming.

"We believe that we can generate significant value with this service over time, by enhancing our content monetization, strengthening the value of pay-TV, becoming a leader in targeted, digital streaming advertising, and expanding our reach through direct customer relationships," Mr. Roberts said.

Comcast's nascent wireless business, Xfinity Mobile, continues to grow, though it remains unprofitable on a stand-alone basis. Xfinity Mobile added 227,000 net subscribers in the fourth quarter of 2018, bringing its total to 1.2 million subscribers, with losses of $191 million for the period.

Comcast said it would begin reporting Xfinity Mobile as part of its cable segment.

"We're very pleased with this performance in mobile so far and the value it adds to the bundle and are on track to achieve our primary objectives, including positive stand-alone economics," Mr. Roberts said.

Comcast also disclosed financial results for its Sky unit for the first time since it acquired the European pay-TV company in October of last year. Revenue at Sky rose 5.6% year-over-year to $5.02 billion in the fourth quarter, with $3.98 billion from direct-to-consumer services, such as broadband and pay-TV subscriptions.

Corrections & Amplifications Comcast is raising its annual dividend 10% to 84 cents per share. An earlier version of this article incorrectly said that was the quarterly dividend. ( Jan. 23, 2019)

Write to Benjamin Mullin at Benjamin.Mullin@wsj.com

(END) Dow Jones Newswires

January 24, 2019 02:47 ET (07:47 GMT)

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