Movies Give NBCU 3Q Profit Boost

Revenue from the Cable Networks segment increased 7% to $2.4 billion compared to $2.3 billion in the third quarter of 2014, driven by an 8.6% increase in distribution revenue and a 2.0% increase in advertising revenue, partially reflecting the introduction of NASCAR on its sports network, NBCSN, as well as a 17.6% increase in content licensing and other revenue. It’s expected, like so many current offerings, to lean heavily on Wi-Fi.

Asked about wireless opportunities, Roberts said “wireless obviously is an important area”, adding: “We are going to trial a few things and test a few things after we activate” a mobile virtual network operator deal with Verizon.

Thanks to hits like “Jurassic World”, “Minions”, and “Furious 7”, the filmed entertainment division is having a blowout year, with operating cash flow growing from $151 million a year ago to $376 million in the latest quarter. This is a decrease from the 99 cents reported in third-quarter 2014, which was the result of a one-time $724 million, or 28 cents per share, benefit due to favorable income tax adjustments, according to the company. Roberts noted that “we have a higher margin on broadband”.

Brian Roberts the CEO at Comcast said it was the first time any of the studios had three of its films cross the threshold of $1 billion in box office receipts worldwide during the same year. Within this segment, Video revenues grossed $5,348 million, up 3.3% from the prior-year quarter. It lost 48,000 cable TV customers (compared with 81,000 lost in the year-earlier period) but made up for the contraction by increasing the number of high-speed Internet and business services subscribers. Sell-side analysts are projecting earnings of $0.96 for the quarter. Comcast has more internet customers than television customers. And as people increasingly watch TV online instead of through cable TV, the company has tried to adjust by developing a subscription Web-streaming service called Stream, and introducing a free online video service, Watchable, featuring videos from youth-oriented networks such as Vice Media and AwesomenessTV. That topped the average analyst estimate of 304,000.

Total customer relationships were up 156,000, including a 320,000 increase in high-speed internet customers. EPS is $3.38. The name has a market cap of $155.43 billion and a median Walls price target of $70 with a high target of $84. In the past couple months Comcast informed Verizon Communications Inc.VZ 0.43 % that it would like to execute on a 2011 agreement to resell Verizon’s airwaves to offer cellphone service, according to a person close to Comcast.

Comcast has reported that the company’s revenue were up 11% since previous year, better than what was forecasted by Wall Street.