Comcast Profits Rise Despite Recession - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Mobile // Mobile Applications
06:15 PM

Comcast Profits Rise Despite Recession

The company's subscriber base was boosted by the digital television transition, but it is facing increased competition from Verizon and AT&T.

Comcast continues to defy the recession by posting a 5.4% increase in profits for the first quarter.

The cable company reported a net income of $778 million, up from $738 million for the same period last year. Comcast is benefitting from the federally-mandated switch to digital television, and the increased number of subscribers led to $8.84 billion in revenue, a 5.3% year-over-year increase.

"Our results for the first quarter mark a solid start to 2009, demonstrating the underlying strength of our subscription businesses and our ability to continue to manage effectively in a challenging environment," said Brian Roberts, Comcast's CEO, in a statement. "Looking ahead, we remain focused on delivering superior products to our customers, strengthening our competitive position and building value for our shareholders over the long term."

The "triple play" offering, a bundled package of Internet, television, and VoIP phone services, was especially popular, and it led to an 8% increase in revenue per user. Overall, the company added 549,000 net new subscribers for the quarter.

Along with competition from rivals like Time Warner and Cox Cable, Comcast is seeing telecoms increasingly encroach on its territory. Verizon is spending billions of dollars to roll out fiber to the home to offer IPTV with its FiOS offering, and AT&T is providing television services with its U-Verse.

The telecoms also have the added benefit of being able to bundle mobile phone offerings with home phone, television, and Internet services. Most of the major cable companies are tackling mobility by investing in Clearwire and eventually reselling WiMax services. Cox is taking a different approach and will be launching its own cellular service using spectrum it acquired in a government auction.

Learn more about all the latest products and technologies at TechWeb's Interop Las Vegas, May 17-21. Join us (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
What Becomes of CFOs During Digital Transformation?
Joao-Pierre S. Ruth, Senior Writer,  2/4/2020
Fighting the Coronavirus with Analytics and GIS
Jessica Davis, Senior Editor, Enterprise Apps,  2/3/2020
IT Careers: 10 Job Skills in High Demand This Year
Cynthia Harvey, Freelance Journalist, InformationWeek,  2/3/2020
White Papers
Register for InformationWeek Newsletters
Current Issue
IT 2020: A Look Ahead
Are you ready for the critical changes that will occur in 2020? We've compiled editor insights from the best of our network (Dark Reading, Data Center Knowledge, InformationWeek, ITPro Today and Network Computing) to deliver to you a look at the trends, technologies, and threats that are emerging in the coming year. Download it today!
Flash Poll