For the quarter ended September 30, the company saw earnings fall 8.2% to $867 million, or 31 cents per diluted share, compared with earnings of $944 million, or 33 cents per diluted share, in the same period a year ago. Earnings from continuing operations were 34 cents per share, which beat analyst estimates of 30 cents a share.
Revenue rose 7.1% to $5.91 billion from $5.52 billion during the quarter. Revenue from its cable segment increased 6.9% to $9.0 billion from $8.4 billion, attributed to a 55% increase in business services and a 27% increase in advertising revenue, as well as the growing number of subscribers.
A 3.5% decrease in video subscribers was offset by a 13.2% growth in voice customers and a 6.5% increase in high-speed Internet customers. The monthly average revenue per video customer was up 10.4% to $129.75 in the third quarter."Our results mark the third consecutive quarter of accelerating growth in revenue and operating cash flow, driven by overall customer growth, a robust advertising market and continued strength in business services," chairman and CEO Brian Roberts said. The company's programming segment revenue increased 8.7%, driven by a strong advertising market across its networks and strong ratings at E!. Warnings were hampered by $27 million in transaction costs related to the deal with NBC Universal. In December 2009, General Electric announced a joint venture agreement with Comcast. Through the deal Comcast will own 51% of NBCU and 49% would be owned by GE, but managed by Comcast. For the nine months ended September 30, earnings remained relatively flat, coming in at $2.62 billion, or 93 cents per share, compared with earnings of $2.68 billion, or 93 cents, in the same period a year ago. Profits were weighed down by $57 million in costs related to the NBC Universal deal. Revenue rose 5.8% to $17.34 billion from $16.38 billion, driven by gains in its cable and programming segments. Cable revenue increased 5.2% to $26.6 billion compared to $25.3 billion while its programming segment revenue was up 11.3% to $1.3 billion. Management believes that "focus on consistently improving the customer experience and on driving profitable growth will further strengthen our competitive position and build long-term value for our shareholders," Roberts said. During the third quarter, Comcast repurchased 17.5 million of its common shares for $300 million and paid cash dividends totaling $265 million. --Written by Theresa McCabe in Boston.
>To contact the writer of this article, click here: Theresa McCabe. >To follow the writer on Twitter, go to @TheresaMcCabe. >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV