Comcast Corporation (NASDAQ:CMCSA), the biggest US cable company, jumped the most since 2010 after Q4 profit increased greater than analysts anticipated and video-customer losses contracted for the fifth consecutive period.
Comcast rose 4.7% to $28.52 at the settlement in New York, the biggest one-day rise since September 2010. Shares of the Philadelphia-based firm have increased 20% this year and are trading close to a five-year high.
Neil Smit, chief of Comcast Cable, stated on a conference call that the company missed 17,000 video customers in the quarter, against 135,000 a year previously. In accordance with 11 forecasts collected by Bloomberg, analysts anticipated a fall of 127,000. Comcast, facing rivalry from phone firms and Web-based competitors like Netflix Inc. (NASDAQ:NFLX), enhanced customer service and let users watch more TV shows and movies on mobile devices.
The amount of video subscribers lost was the least since the Q1 of 2007. Still, Smit stated he does not anticipate positive net video additions in the Q1 of 2012.
Previous quarter, the cable provider enrolled 336,000 broadband clients, greater than the average analysts’ forecast of 279,000, and 146,000 phone users, in line with anticipations.
Net income amplified 26% to $1.29 billion, or 47 cents per share, against $1.02 billion, or 36 cents, a year previously. Analysts anticipated 42 cents per share on average.
Sales increased to $15 billion, a 3% gain on a pro forma basis, which supposes Comcast held NBC Universal in the Q4 of 2010. Comcast’s purchase of NBC Universal settled in January 2011. Cable-network revenue amplified 5.3% to $2.21 billion.
Comcast as well approved a $6.5 billion stock repurchase and amplified its yearly dividend 44% to 65 cents per share.
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