Comcast Corp.’s share price up, posts a 15% annual profit increase in Q2

Comcast Corp., the biggest US cable operator by number of subscribers, revealed that its profit grew over the second financial quarter, with its high-speed internet service leading the rally.

According to the companys statement, Comcasts adjusted profit excluding gains on sales and acquisition-related items amounted to $1.99 billion, or 75 cents per share, up from $1.73 billion a year ago.

Revenue was up 3.5% on an annual basis to $16.8 billion, while TV-subscriber losses were down some 10% annually to 144 000. The season is typically negative for pay-TV, with college students canceling subscriptions as they leave for summer vacation.

“[The second quarter] is typically the weakest quarter of the year for the video distribution business, and 2014 is no exception,” Vijay Jayant, analyst at ISI Group, said for the Financial Times.

Most importantly, the company added 203 000 broadband customers, up from 187 000 a year earlier, with broadband revenue up 9.7%.

The company managed to increase the number of cable subscribers over the fourth quarter of 2013 and the first quarter of the current fiscal year for the first time in more than 5 years. The reduced losses over the second quarter show that that the efforts of Comcast to keep their subscribers by betting on updated technology have proven successful.

Recently the company has become more focused on its next-generation X1 platform and Xfinity streaming video offerings, repositioning against stiff competition from other companies that operate in the industry, such as Netflix and YouTube.

Comcast Corp. was 1.51% up to close at 54.63 dollars per share yesterday, marking a one-year change of +21.59%. According to information published on CNN Money, the 22 analysts offering 12-month price forecasts for Comcast Corp. have a median target of 61.00, with a high estimate of 69.00 and a low estimate of 52.00. The median estimate represents a +11.66% increase from the last price of 54.63.