Comcast Reports 30% Q1 Profit Increase, With Broadband Offsetting TV Net Losses
Comcast reported a 30% increase in its Q1 profit "as strength in its broadband business helped offset weaker results from its TV networks," according to Ramachandran & Launder of the WALL STREET JOURNAL. Revenue increased 23% to $14.88B, "although that growth was only 9.6% on a pro forma basis, in which the numbers are accounted as if the NBCUniversal acquisition was effective on Jan. 1, 2010." Revenue from the sale of high-speed Internet via broadband "rose 10%, while video revenue grew 1.6%." NBCU saw "weaker results from its TV networks." The cable nets' operating cash flow fell 1.4% to $805M because NBA games "were pushed to the first quarter after a lockout at the end of last year." NBCU President & CEO Steve Burke said the licensing fees the company had to pay for those games, as well as higher programming and production costs otherwise, contributed to making the "cable networks look like they weren't growing." Comcast's broadcast division, which includes NBC, "swung to a loss of $10 million before depreciation and amortization from a profit of $20 million on the same basis a year earlier." Revenue from the broadcast division increased 37%, "helped by advertising on the Super Bowl" (WALL STREET JOURNAL, 5/3).