SKY Sky

By Benjamin Mullin 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (October 26, 2018).

Comcast Corp. on Thursday said net profit rose 9.3% in the third quarter, as growth in the content-and-distribution giant's broadband business more than offset a continued decline in cable-TV subscriber numbers.

The Philadelphia-based company last month secured control of European pay-TV giant Sky PLC for $38.8 billion, in a deal that Comcast said would help it diversify its revenue base beyond the U.S., where cable cord-cutting is taking a toll on the traditional TV business.

On an earnings conference call Thursday, Chief Executive Brian Roberts said that the acquisition of Sky supports Comcast's existing business and increases its value.

"We think Sky is an incredible and unique standalone business that fits perfectly with Comcast," Mr. Roberts said.

Comcast reported a net profit of $2.89 billion, or 62 cents a share, up from $2.64 billion, or 55 cents a share, in the year-earlier quarter. Revenue increased 5% to $22.14 billion.

Comcast added 363,000 internet consumers in the period, up 70% from a year earlier, but lost 106,000 cable-TV subscribers for its sixth straight quarter in decline. Broadband revenue grew 9.6%, while video declined 2.9%.

Revenue at Comcast's NBCUniversal unit rose 8.1% to $8.63 billion, propelled by growth from its cable networks and broadcast television businesses. Those increases helped offset a revenue decline in the company's theme-park division, which it said was affected by bad weather at Universal Studios Japan. The profitability of its filmed-entertainment division was down compared with the year-earlier period, which the company said had benefitted from the success of "Despicable Me 3."

Mr. Roberts said on Thursday that Comcast is evaluating ways to expand in the streaming business and added that the economics of streaming are "very challenging," noting that the company was focused on nurturing its existing TV business.

This summer, Comcast lost a bidding war to Walt Disney Co. for Fox's entertainment assets. Disney agreed to pay $71 billion for Fox's famed Hollywood studio and international assets. If Fox had won the September auction for Sky, Disney would ultimately have taken 100% control of the British pay-TV company. Instead, Fox last month agreed to sell its 39% stake in Sky worth roughly $15 billion to Comcast.

(END) Dow Jones Newswires

October 26, 2018 02:47 ET (06:47 GMT)

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