Comcast Reports Strong Q2

Basic losses up, but margins stable
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Comcast kicked off the second
quarter earnings season Wednesday by reporting strong results -- revenue
and cash flow were up about 6% each. And though the nation's largest
MSO may have missed analysts' targets for basic and high-speed data
growth, they appear to be attracting higher margin customers.

Overall, Comcast had a strong
second quarter financially -- beating analysts' expectations for revenue
and cash flow growth for the period. Free cash flow, up 15.8% to $1.4
billion in the quarter, also outpaced consensus estimates. Overall,
operating cash flow margins remained stable at 41.3% (vs. 41.1% in 2009)
suggesting that although Comcast has fewer customers, they are spending
more.  

The Philadelphia-based MSO
seemed to miss the mark on basic customer losses -- Comcast shed 265,000
basic customers in the period, vs. the consensus estimate of 169,000
losses -- and high-speed data additions (118,000 customers vs. consensus
of 204,000), but stayed ahead of the pack on telephony additions (230,000 in the period vs. consensus of 200,000).

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