Comcast reports boost in earnings after Rio Olympics and attraction openings in Hollywood and Japan
Comcast posted better than expected results today as it added viewers in its third quarter as a result of the Rio Olympics over the summer.
The cable giant said today that it had achieved "terrific operational and financial results" and the company remained on a trajectory for growth.
The figures
Revenue grew 15 per cent to $21.3bn (£17.4bn), though this was just 5.5 per cent when excluding the impact of the Olympics. Total quarterly profit increased to $2.2bn, up from $2bn a year ago.
It also added 32,000 video customers and 330,000 high-speed internet customers through its cable communications.
Broadcast operating cashflow more than doubled with its entertainment arm NBCUniversal, driven by the success of the Olympics. The film unit, however, saw an operating cash flow that was down six per cent from a year ago, despite the success of the new Jason Bourne film.
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It also saw its operating cash flow for its theme park arm increase a whopping 62.4 per cent, due to the inclusion this quarter of Universal Studios Japan, and the success of the opening of The Wizarding World of Harry Potter attraction in Hollywood.
Earnings per share for the third quarter were $0.92, a 15 per cent increase from the same quarter last year.
Why it's interesting
The market is tough for cable and TV right now, as online streaming services and subscription models take over and advertisers decide to go elsewhere.
Read more: Rio Olympics and Euro 2016 set to pump at least £3bn back into UK economy
But as NBCUniversal diversifies its offering with its expansion into theme parks, teamed together with other arms of the company, the risks seem to be paying off for them – at least for this quarter.
What the company said
Brian Roberts, chairman and chief executive of Comcast, said: “I’m pleased to report that our businesses generated double-digit revenue and operating cash flow growth for the third quarter of 2016. Cable delivered solid operating cash flow growth coupled with great customer metrics, and has now added 170,000 video subscribers over the past twelve months.
The Rio Olympics were the most profitable and successful games in our history, and demonstrated our ability to deliver an unparalleled entertainment experience through NBCUniversal together with Comcast Cable and the X1 platform. NBCUniversal reported operating cash flow growth of over 30 per cent, benefitting from the Olympics, continued growth at our theme parks, and the theatrical success of The Secret Life of Pets this quarter. I’m proud of our consistent execution and excited about the opportunities ahead for Comcast NBCUniversal.