Comcast profit, sales exceed estimates on broadband additions

Comcast Corp., the largest U.S. cable company, topped profit and sales estimates in the first quarter after gaining broadband customers and curbing video-subscriber losses.

Net income rose 30 percent to $1.22 billion, or 45 cents a share, compared with $943 million, or 34 cents, a year earlier, the Philadelphia-based company said today in a statement. Analysts had projected 42 cents.

Comcast added 439,000 broadband subscribers in the quarter, topping the 382,000 average estimate of 11 analysts' projections compiled by Bloomberg. The gain helped mitigate a decline of 37,000 in video customers. At least two analysts anticipated Comcast would increase the number of cable-TV subscribers for the first time since 2007.

“Comcast has been out-executing everybody,” Vijay Jayant, an analyst at ISI Group in New York who recommends buying the stock, said before the results were released. “Positive net adds on video is more of an optical event than truly affecting the financials, but it matters on investor sentiment.”

Comcast still managed to curb video customer losses from a year earlier, when it shed 39,000 cable-TV subscribers. It marked the sixth consecutive quarter Comcast has limited video losses. Comcast raised subscriber fees in the quarter to 62 percent for its customers, leading to some cancellations and an increase in average revenue per user, which jumped 7.8 percent to $143.40.

The cable provider added a net of 164,000 phone customers, less than the 187,000 average analyst estimate.

NBC Universal

Comcast revenue increased 23 percent to $14.9 billion, topping estimates of $14.5 billion. NBC Universal sales rose 18 percent to $5.47 billion, helped in part by increased revenue from Super Bowl advertising.

Broadcast television revenue rose 37 percent to $1.85 billion.

Cable network revenue advanced 5.8 percent to $2.1 billion.

Comcast bought back $750 million in shares after saying it would repurchase $3 billion in 2012 last quarter.

Comcast rose 0.8 percent to $30.60 at the close yesterday. Shares have gained 29 percent this year before today.

(Comcast plans to hold a conference call at 8:30 a.m. New York time. To listen, visit http://www.cmcsk.com/.)

--Editors: Cecile Daurat, Niamh Ring

To contact the reporter on this story: Alex Sherman in New York at asherman6bloomberg.net

To contact the editor responsible for this story: Ville Heiskanen at vheiskanenbloomberg.net