Are you interested in the communications sector? If you are, take note of the following. Before the market opened on Thursday, Comcast Corporation (NASDAQ:$CMCSA) posted its second quarter earnings report. The earnings surpassed analyst expectations after a big pop in film revenue and as NBCUniversal and theme parks posted double-digit revenue increases.
During the quarter, amid the release of “Fate of the Furious”, film entertainment revenue increased 59.6%. At NBCUniversal, revenue increased 17% to $8.33 billion. As the market opened, Comcast’s Class A shares grew about 1%.
Quick Summary:
- Earnings Per Share: 52 cents a share, vs 48 cents per share expected
- Revenue: $21.17 billion, vs $20.86 billion expected
- Net Income: $2.51 billion, or 52 cents a share, up from roughly $2.03 billion, or 41 cents a share, in 2016
This is significant news, as it is up from earnings of 41 cents per share on revenue of $19.27 billion from the 2016 period.
Consumers Have Turned to the Internet For Video
During the second quarter, Comcast added 114,000 customer relationships, which is fewer than the 116,000 added this time last year, as residential video customers dropped more in 2017. Additionally, the Mississippi-based company added 175,000 high-speed internet customers, which is slightly less than the 220,000 added in 2016.
That said, Comcast still grew cable communications revenue by 5.5% in the period because rate adjustments and high-speed internet customers increased, counterbalancing the decline in political advertising revenue after the 2016 U.S. presidential election. Also, improving digital customer service offers helped to reduce costs, according to executives on an earnings call.
In the report, Comcast also mentioned that their theme parks saw more visitors during the quarter, as spring break vacations were in line with numerous attractions like The Wizarding World of Harry Potter.
Even though 64% of all United States households have a subscription video on-demand service from providers like Netflix (NASDAQ:$NFLX) or Amazon (NASDAQ:$AMZN) Prime, Comcast’s box-office hit “The Fate of the Furious” was complemented by a 42.6% revenue increase in home entertainment. It was led by movies like “Sing” and “Fifty Shades Darker.”
In morning trade, Comcast shares increased 1.5% to $39.94.
Featured Image: twitter
