Comcast beats profit estimates but streaming rivals eat into revenue
US media giant Comcast has beaten Wall Street estimates to post strong first-quarter profit, but fell short on revenue.
The figures
Comcast posted a 17.9 per cent increase in revenues to $26.9bn (£21bn).
Net profit rose 14 per cent to $3.6bn.
Adjusted earnings before interest, tax, depreciation and amortisation increased 18.1 per cent to $8.6bn.
Why it’s interesting
Comcast’s profits for the first three months of the year surpassed expectations, thanks to strong growth in its high-speed internet division.
But the firm’s overall revenue missed analyst estimates as it lost more customers in its video and phone businesses than it expected.
Revenue from NBC Universal’s cable networks and broadcast TV suffered a 19.8 per cent decrease on the year before. But Comcast said this was largely due to its successful broadcasts of the 2018 Winter Olympics and the Super Bowl.
The disappointing revenue marks the growing challenge faced by traditional broadcasters from streaming services such as Netflix and Amazon.
Comcast, which completed its £30bn takeover of Sky last year, is looking to move into video streaming and expand its broadband offering in a bid to diversify revenue.
What Comcast said
Chairman and chief executive Brian Roberts said: “Comcast is off to a terrific start in 2019, financially, operationally and strategically.In the first quarter, we delivered strong earnings and earnings per share growth, as well as robust free cash flow.
“Across all parts of the company, our teams are executing at a high level and collaborating to drive growth and innovation. I’m excited about this quarter’s results and the opportunities ahead.”