Comcast Tops Q3 Earnings Forecast After $40 Billion Sky Deal
Comcast Corp. (CMCSA) posted stronger-than-expected third quarter earnings Thursday as the biggest U.S. cable company prepares to take on Disney (DIS) and Netflix (NFLX) in the global streaming market following its $40 billion takeover of Britain's Sky plc Plc (SKYAY) .
Comcast said adjusted earnings for the three months ending in September came in at 65 cents a share, topping analysts forecasts and rising 19.2% from the same period last year. Group revenues, the company said, rose 5.5% to $22.13 billion, again ahead of the consensus forecast, while cable revenues were up 3.4% to $13.8 billion.
This is an exciting and important time in Comcast's history," said CEO Brian Roberts. "NBC finished the 52-week season ranked #1 in total viewers for the first time in 16 years and #1 in adults 18-49 for the fifth consecutive season, and is off to a great start in the new season. Our recently completed acquisition of Sky is transformative for our company, helping create a unique global leader in media, technology, television and broadband."
Comcast shares were marked 3.75% higher following the earnings release, indicating an opening bell price of $35.40 each a move that would still leave the Philadelphia-based group with an 11% year-to-date decline.
NBCUniversial revenues rose 8.1% from the same period last year to $8.63 billion, Comcast said, while quarterly internet additions came in at a 363,000, well ahead of the 294,000 forecast. Around 106,000 customers were lost to rivals such as Netflix and AT&T (T) , company data indicates, but that was less than the Street's 152,000 forecast.
Comcast said earlier this month it would pause its stock buyback program next year as it focuses on debt reduction in the wake of its $40 billion acquisition of Sky .
Comcast said it would buyback around $5 billion in shares over the 2018 year, however, according to a Securities and Exchange Commission filing. As of December 31, 2017, Comcast had $7 billion available under its share repurchase authorization.
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Last month, Comcast effectively gained complete control over Sky, Europe's biggest pay-TV broadcaster, when 21st Century Fox (FOXA) agreed to sell its 39% stake ending one of the longest takeover battles in U.K. history and creating what will be the world's largest broadcaster with more than 53 million customers over five countries across the U.S. and Europe.
Comcast, which topped the best-and-final offer of £15.67 from Fox and Disney with a £17.28 bid that valued Sky at £30.6 billion ($40.2 billion), had purchased 36.9% of the outstanding shares over the past three days and will now have complete control of the broadcaster and its 23 million customers.
Disney, which is purchasing the media assets of Fox for around $71.3 billion, said it agreed to the sale and would use proceeds from the Sky sale, which is valued at around $15 billion to pay down debt
Comcast posted stronger-than-expected third quarter earnings Thursday as the biggest U.S. cable company prepares to take on Disney and Netflix in the global streaming market following its $30 billion takeover of Britain's Sky.
