What you need to know
- Comcast has reported higher than expected earnings for Q2 2019.
- The company added 209,000 new high-speed internet customers during the quarter, exceeding expectations.
- It plans to launch a free NBC streaming service in April 2020.
Philadelphia-based cable giant Comcast today reported its Q2 2019 earnings. The company managed to beat EPS estimates but revenue fell shorts of expectations. Adjusted earnings per share grew to 78 cents a share, instead of 75 cents a share estimated by analysts. Revenue came in at $26.86 billion, which is 23.6% higher compared to the same period last year. The company added 209,000 new high-speed internet customers during the second quarter this year but lost 224,000 video customers. However, total customer relationships went up to 30.9 million in Q2 2019, with 152,000 net additions.
With its video business continuing to lose customers, Comcast is now focusing on other business areas to drive growth. British broadcaster Sky, which was acquired by Comcast last year, added 304,000 new customers in Q2 2019, an improvement of 197,000 over Q2 2018. Revenue, on the other hand, fell 3.3% compared to last year. Sky's advertising sales saw a drop of 10.7% due to currency fluctuations.
The cable giant is also planning to launch a free, ad-supported NBCUniversal streaming service in April next year. Comcast will be streaming "The Office" on its own streaming service starting 2021 for five years. According to NBCUniversal CEO Steve Burke, "The Office" is the number one show and is about 5% of all of Netflix's volume. In addition to "The Office", the streaming service is expected to have content from Sky Studios as well.
The service itself is expected to be based on a similar platform as Sky's Now TV streaming service in the UK. CNBC reports the service will be available to all pay-TV subscribers by logging in through a cable or settle provider. Those do not have a cable or satellite subscription, will need to shell out $12 per month for the service.