Comcast 2Q Profit Drops on NBC-related Costs

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Comcast (NASDAQ:CMCSA) reported Wednesday a slight decline in its second quarter profits, negatively driven by significant transaction costs associated with its pending NBC Universal acquisition, though partially offset by growth in its business services.

Second quarter profit declined slightly to $884 million, or 31 cents a share, compared with $967 million, or 33 cents a share, in the year-earlier period, and slightly ahead of average analyst estimates of 32 cents, according to a Thompson Reuters poll.

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The company was hit by NBC-related costs, totaling $36 million last quarter. The pending deal would allow Comcast to control NBC's television, cable and movie studio assets.

Revenue for the nation’s largest cable TV provider increased 6% to $9.5 billion, from $8.9 billion in the prior year quarter and ahead of the Street’s view of $9.29 billion.

The Philadelphia-based company saw a 54% increase in its business services and a 54% hike in its advertising revenue, which the company attributed to a growing number of residential customers purchasing multiple products as well as rate increases.

Comcast CEO Brian L. Roberts said the company delivered “healthy” operating and financial results that reflected customer growth and increases in its high-speed internet and voice revenue.

“We are very focused on profitable growth,” he said. “At the same time, we continue to make significant progress deploying All-Digital and DOCSIS 3.0 to enhance our superior products, strengthen our competitive position and build long term value for our shareholders.”

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