Comcast Reports Stronger-Than-Expected Second-Quarter Profits

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Comcast Reports Stronger-Than-Expected Second-Quarter Profits

7:20 am on July 28, 2006 | Category: Business, VoIP, Telecom Services, Internet, Television

America’s leading cable company, Comcast, posted a better-than-expected increase in second-quarter profits yesterday, due to strong growth in television, broadband, and digital phone subscriptions.

The cable operator’s net profits increased by 7% to $460 million ($0.22/share), compared to $430 million ($0.19/share) in the same period a year earlier. This exceeds the $0.20/share average forecast predicted by a recent survey of Wall Street analysts.

Total revenue was up 11% compared last year, reaching $6.23 billion for the second quarter, and easily surpassing the $6.14 billion predicted by analysts.

These positive results have spurred Comcast to raise its future revenue growth outlook to between 10% and 11%, compared to the 9% previously forecast. The cable company expects to sell a total of 4.2 million individual product subscriptions, or “Revenue Generating Units,” in 2006.

Comcast is well on its way to achieving this goal with net gains of 284,000 television subscriptions, 227,000 phone subscribers, and 305,000 high-speed internet plans in the three month period ending on June 30.