By Shalini Ramachandran
Comcast Corp.'s fourth-quarter profit edged up 0.6% thanks to
growth in its broadband and business-services divisions, even as
video customer additions slowed sharply and cable networks
experienced advertising weakness.
Overall, Comcast reported a fourth-quarter profit of $1.93
billion, or 74 cents a share, slightly up from $1.91 billion, or 72
cents a share, a year earlier. Excluding certain gains and costs,
adjusted profit per share for the latest quarter grew 16.7% to 77
cents a share. Revenue rose 4.8% to $17.73 billion.
Comcast also said it would increase its dividend 11% to $1 a
share on an annualized basis and boost its stock-repurchase program
to $10 billion. It said it would buy back $4.25 billion of shares
in 2015, regardless of whether its pending $45 billion acquisition
of Time Warner Cable Inc. closes.
The company added 6,000 video customers in the quarter, a sharp
slowdown from the 46,000 it added a year ago.
Analysts surveyed by Thomson Reuters projected a per-share
profit of 78 cents on $17.68 billion in revenue.
The latest results come as Comcast is facing tough scrutiny from
regulators in Washington over its pending acquisition of Time
Warner Cable. Cable investors also have been concerned about the
potential impact of the Federal Communications Commission's
proposal to regulate broadband service like a public utility.
Comcast's residential video revenue grew only 1.3% in the
quarter, continuing a trend of slower growth as the company hasn't
raised rates as sharply as before and it markets skinnier bundles
of TV channels to customers.
Meanwhile, Comcast's subscriber growth in broadband and voice
slowed. Comcast added 375,000 broadband subscribers, compared with
379,000 a year ago. Voice subscriber additions dropped to 123,000,
from 227,000 in the prior-year period, driven by more customers
opting for two-product bundles rather than the full "triple play."
Comcast boosted its broadband revenue 9.9%, while voice revenue
declined 1.4%. Business-services revenue jumped 20.8%.
Overall at the company's cable business, which accounts for the
bulk of the top line, revenue increased 6.1% to $11.3 billion.
Operating cash flow, a measure of profitability, rose 6.3% to $4.68
billion.
At Comcast's NBCUniversal entertainment arm, operating cash flow
rose 6.6% to $1.43 billion, despite continued softness at its cable
networks unit. Cable networks experienced a 5.6% decline in ad
revenue to $857 million due to ratings weakness, a malaise that is
continuing to drag down many television networks. Cable networks'
operating cash flow declined 1.8% to $912 million.
The broadcast TV segment, home of the flagship NBC network,
reported revenue growth of 4.8%, helped by strong ratings at NBC
last year. Operating cash flow at the broadcast television unit
grew to $230 million, from $140 million in the year-ago
quarter.
The theme parks division experienced a 37.6% increase in
operating cash flow to $352 million, thanks to the popularity of a
new "Harry Potter" attraction at the Universal Orlando theme
park.
Total revenue at NBCUniversal rose 2.3% to $6.62 billion.
Write to Shalini Ramachandran at
shalini.ramachandran@wsj.com
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