Comcast profits soar as a result of its fourth-quarter earnings. On January 28, the cable company disclosed that their fourth-quarter earnings initiated a profit of $1.91 billion increase of a seventy-two cents per share, compared to their earlier year earnings of $1.5 billion and a fifty-six cents per share. Comcast is considered the number one cable operator at this time and owns NBCUniversal.
According to the chief executive of Comcast, Brian Roberts states, these fourth-quarter profits have exceeded their expectations and have left the company feeling great about the improvements made to NBCUniversal. On December 31, the three-month quarter ended and left the net video subscribers that were added at a 43,000 mark. The company has also been able to decrease customer losses and was excited to announce that Comcast profits soar at 26 percent for its fourth-quarter. Likewise, their revenue at the end of this quarter was at a high of $16.9 billion to 6.2 percent.
These profits set Comcast in a good place, and according to LA Times, NBCUniversal’s revenues gained were $6.5 billion to a 7.5 percent. This has a lot to do with NBCUniversals cable channels, Bravo and USA Network, the Universal pictures movie studio, and the NBC broadcasting network. According to Comcast’s chief financial officer, Michael Angelakis the company generated its biggest box office film in history through its Universal picture, Despicable Me 2. The NBC broadcasting network is said to have benefited from The Voice and Sunday Night Football, which hit the company at up to 11.5 percent to $2.2 billion in revenues. Whereas, the cable networks overall generated profits for its fourth-quarter was $2.3 billion to 5.3 percent. After comparing these scores to earlier quarters that puts Comcast up to nearly 4 percent to $929 million for its quarter’s earnings. Comcast profits soar also as a result of its recently purchased theme parks in Orlando, FL and in Los Angeles, CA. The park revenues were also up from previous ownership at a 8.8 percent to $566 million.
Since the announcement of Comcast fourth-quarter profits, there have been increasing discussion concerning Comcast’s desire to aid Charter Communications cable in buying assets for Time Warner Cable. Negotiations at this time are being kept private, but according to LA Times, Comcast has expressed interest in acquiring Time Warner Cable should Charter’s efforts in obtaining Time Warner Cable succeed. Charter has made an offer to buy Time Warner Cable, but they have refused stating the offer was inadequate.
According to Business Week, Charter offered the company a per share value at $132.50, which in turn values the company at $37.4 billion with no reference to debt. If Charter were to walk into an agreement with Comcast this would enable them the funds to raise the stakes on the offer being made, and in turn enter the companies into consecutive negotiations. As for now, the negotiations and agreements are not being disclosed. Business Week reports that spokesman for Comcast, John Demming, spokeswoman for Time Warner Cable, Susan Leepson, and spokesman for Charter, Justin Venech have all declined to disclose anything concerning the sales and business negotiations.
Comcast currently functions in thirty-nine states. The company is Philadelphia based and if it were to take on the markets of Time Warner Cable it would give Comcast the opportunity to advertise within a larger pool of people, cut costs, and sell programming. However, this is all yet to be seen. What is known is that since Comcast profits soar this puts them in a great place for further expansion, and despite this positioning in the cable market the company appears to be thrilled to have reported a rise in their fourth-quarter revenues.
By Sarah Widger