Key Takeaways from Comcast Corporation (CMCSA) Conference Call

Comcast Corporation (NASDAQ:CMCSA) delivered results for the fourth quarter that beat Street analysts’ estimations. There are some other key takeaways like the addition of video customers, which was the most in eight years, despite the threat of cord cutting and users shifting in preference to online offerings. Its Internet division, Business Services, Film Studio, and NBCUniversal all recorded a growth of 10%, 19%, 26% and 13% respectively. Aside from that, the company hiked its annual dividend rate by 10% and allocated $5 billion in the current year for the repurchase of its shares.

Addition of Subscribers

One of the key takeaways from Comcast Corporation (NASDAQ:CMCSA)’s conference call was the addition of 89,000 video subscribers in the fourth quarter. The company was only able to add 6,000 new subscribers in the year-ago quarter. The addition was a record for any quarter in the last eight-year period.  Most of the cable, as well as, satellite-TV operators were losing subscribers in favor of offerings from video-on-demand service providers like Netflix, Inc. (NASDAQ:NFLX) or Hulu. As a result, cable firms’ results took a beating in some of the quarters last year.

The top cable service provider is investing in enhancing the experience of its customers thus boosting features on its set-top boxes. Aside from that, the company also unveiled smaller bundles as part of efforts to not only hold its customers but also add subscribers. The company has also been toying with the idea of entering the wireless market for quite some time and the Street has been keeping a close watch on this.

Company will participate in FCC auction

The Federal Communications Commission would hold an auction meet for the broadcast TV spectrum incentive, which was nothing but an attempt to repurchase the wireless airwaves from broadcasters. The FCC, in turn, would sell them to prospective buyers in the industry and others. Comcast Corporation (NASDAQ:CMCSA) indicated that it would also take part in the auction, which would commence in late March.

Purchase Of Spectrum

The company’s CFO, Mike Cavanagh, said during the conference call that it would evaluate, consider and could purchase spectrum only if it liked the pricing. The airways are valuable in developing a potential infrastructure to offer wireless services to its customers. The Cable firm appears to believe that there is much scope in wireless segment and bundling it with its existing offering could provide a better yield.

Comcast Corporation (NASDAQ:CMCSA)’s Internet customer additions witnessed 23% growth in the fourth quarter to 460,000, which was the biggest in nine years. Its High-speed Internet business revenue reached $3.2 billion while NBCUniversal revenue grew to $7.5 billion and film studio revenue touched $1.63 billion. Its business services division delivered $1.3 billion revenue. Its annual dividend of $1.10 a share represented a 10% increase, which was the seventh straight hike.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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