Boston, MA 02/13/2013 (wallstreetpr) – Comcast Corporation (NASDAQ:CMCSA) announced its 4th quarter and annual consolidated results for the period ending December 31, 2012, showing strong results prospects for future growth.
The company reported an EPS 52% higher than the last year’s figure while operating income increased 13.6% compared to the last year’s profits from operations including 11 months profits for The NBC Universal and 50% of the half year’s profit of Universal Orlando. The increase over the last year’s 4th quarter operating income was 12.4% while 4th quarter EPS was 19.1% above the per share profits of 2011 Q4.
Revenues from cable communication rose by 7% to $10.1 billion; the highest increment was seen from the business services segment that grew 32.4% to $660 million. This is the second year in a row that the business services revenue growth eclipsed other business segments by such a large margin. Last year this segment saw a 34.2% increase in revenues. The revenues included NBC Universal’s sales of $6.0 billion; 4.8% above the 2011 Q4 sales of $5.7billion.
Revenues from advertising and high speed internet emerged as two areas of growth. Higher political advertising boosted advertisement revenues by 19.4% to $652 million.
Cable communications: Operating Cash flows (OCF) i.e. operating profits before impairment and depreciation charges, were $4.2 billion i.e. only 6.75% above the OCF for the comparable quarter of last year. The differential in growth of Operating profits and growth of OCF was attributed to increase in capital expenditures like consumer premise equipment purchases for an expanding consumer base.
Customer -base for high speed internet expanded by 341,000. About 168000 new customers subscribed to its voice services, during the quarter. 17,000 video consumers moved away from the company’s net; the video segment is shrinking consecutively for last two years.
Dividends worth $432million were paid during the Q4 while annual payments went as high as $1.6 billion. In its 4th quarter and consolidated annual results, the company announced it will increase dividends by 20% this year.
Simultaneous to the announcement of the financial results and the decision to raise dividends the company also announced it intends to buy another 49% of the residual interest in the NBC universal, which it does not already own. The company has made a bid offer of $16.7 billion to the General Electric Company (NYSE:GE) which owns that share currently.
Confident Of Entertainment As a Compliment To cable
The company’s bid to buy the General Electric Company (NYSE:GE) ‘s 49% stake in the NBC Universal exemplifies how confident Comcast Corporation (NASDAQ:CMCSA)’s CEO is about the prospect of entertainment away from traditional cable distribution channels.
Following the finalization of the deal the company will own the whole of NBC Universal including the NBC broadcasting network, Bravo Cable TV, and the Universal films and theme park businesses.
Comcast Corporation (NASDAQ:CMCSA) shares were up by 4.44% and currently trading at $40.68. The General Electric Company (NYSE:GE) shares were up by 3.10% and currently trading at $23.28.
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