Comcast reports Q2 profit increase
Results beat expectations as revenue grew 4.5%Comcast on Thursday reported a 53% increase in second-quarter profit as the cable operator posted net income of $967 million.
The company's performance during the past three months outstripped analysts' expectations as total revenue grew 4.5% to $8.94 billion, beating Wall Street projections of $8.86 billion. Operating cash flow increased 5.5% to $3.54 billion.
Despite strong Q2 numbers on the MSO side of the ledger, a faltering advertising marketplace continued to nibble at Comcast's fundamentals.
"The overall advertising market continues to be challenging," Comcast CFO Mike Angelakis said during the company's earnings call. "Our local cable ad revenue declined 20% this quarter, and we are not seeing any signs of recovery."
Angelakis added that Comcast's networks unit, which includes the cable channels E!, Style, G4, Versus and Golf Channel, also took a hit. "Our programming division reported a 5% increase in revenue; however, that includes a 7% decline in advertising revenue in the second quarter," he said.