(Reuters) – Comcast Corp beat Wall Street profit and revenue estimates on Wednesday as its high-speed internet business grew and it lost fewer cable subscribers than expected.
Comcast’s fourth quarter showed that fears over “cord cutting” in cable services and slower broadband growth may be overstated, analysts said.
Results - Comcast - NBCUniversal - News - Entertainment
The results also reinforced why Comcast’s NBCUniversal news and entertainment arm has announced a streaming strategy that appears less disruptive to traditional television and movie businesses than services planned by AT&T Inc and Walt Disney Co .
“We’ve always thought that the television ecosystem was healthier than maybe some people thought,” NBCUniversal Chief Executive Stephen Burke told analysts in a conference call.
Shares - US - Cable - Services - Provider
Shares in the top U.S. cable services provider were up nearly 4 percent in midday trading. Comcast also said it would raise its dividend by 10 percent to 84 cents per share.
NBCUniversal in January announced an advertising-supported streaming TV service that will launch in 2020.
Netflix - Inc - Fee - Threat - Pay
Unlike Netflix Inc , which charges a monthly fee and is seen as a threat to traditional pay television, NBC’s streaming service will be free for its pay-TV customers. It will initially be available to about 50 million customers and expand as NBC negotiates with other pay-TV providers.
Comcast said it lost 29,000 video customers in the quarter, less than the 33,000 it lost last year and the 62,000 estimated by analysts, according to research firm FactSet. Revenue slipped 1.6 percent to $5.58 billion.
Revenue - Comcast - Internet - Business
Revenue from Comcast’s high-speed internet business climbed 10...
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