‘Furious’ box office success boosts Comcast earnings
Comcast reported strong second-quarter earnings Thursday driven by the box office success of “The Fate of the Furious,” increases in distribution revenues for its TV network and growth in its theme park business.
Net income for the quarter was $2.51 billion, up 23.9% from a year earlier. Earnings came in at 52 cents a share, up 26.8%, ahead of the 49-cent average of analysts’ estimates. Revenue was up 9.8% to $21.2 billion.
The Philaldephia company’s film division showed the biggest gain in the quarter, increasing revenues 59.6% to $2.2 billion. The boost came from the theatrical release of “The Fate of the Furious,” the eighth iteration in Universal’s “Fast and the Furious” franchise. Released April 14, the film has taken in more than $1 billion at the box office worldwide.
Home entertainment revenue generated by Universal movie hits “Sing” and “Fifty Shades Darker” also contributed to the division’s performance.
Comcast’s theme parks saw a 15.6% increase in revenue to $1.3 billion, the result of higher attendance during spring break vacations that fell within the quarter. The continuing popularity of Universal’s Wizarding World of Harry Potter attraction in Hollywood helped boost the numbers, as did the new Minions-themed attraction in Japan and the Volcano Bay theme park in Orlando.
Comcast also reported seeing gains in the retransmission fees it’s collecting from video providers that carry the company’s broadcast and cable channels.
Revenue in broadcast television increased 5.3% to $2.2 billion. Cable television saw a revenue gain of 5.1% to $2.7 billion.
The healthy gains from retransmission and affiliate fees in both divisions were offset by slight declines in ad revenue, caused by lower ratings and increased programming costs, the company said.
Comcast, however, continued to be squeezed by cord-cutting. The company, which is the nation’s largest cable operator, lost 34,000 cable TV customers in the quarter, reflecting competition from streaming services such as Dish Network’s Sling TV.
Twitter: @SteveBattaglio
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