Leading Internet Providers Score an Impressive 4th Quarter

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Comcast®, the country’s fastest internet provider, saw positive signs as the 4th quarter showed a significant increase in their earnings. The company completed its repurchase programs, and has announced that they have suspended the buyback program for the year 2019. It increased its earnings by 10% in the final quarter of the last year.

The acquisition of Sky by the company has paved the way to its management policies. This was accused of being a complex move rather than a US-centric one. However, with its latest moves to bring the focus back to the core business has brought back its credibility. The cable segment is witnessing a transition into a higher margin mode with lower capital intensity, and the future looks promising.

It is also speculated that the management is ignoring the potential risk factor arising from higher leverage post-acquisition. The management will have to carefully monitor its expense in order to regain the composure in the market. Besides, it is also a bad time for the shareholders. They will face setback as the company has decided to bring all the buybacks to a standstill for the time being.

The 4th Quarter Results

Comcast® saw encouraging results as the 4th quarter earnings were announced. The total earnings amounted up to $27.8 billion. This is a 27% rise from the previous year. Adjusted EBITDA summed up to $82 billion, which is a 21% increase from 2017.

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Cable revenues of possibly the best internet service in the country were $12.1 billion. This is a 5% higher than that of the preceding year and 1% higher than the speculated value. EBITDA climaxed at $5.8 billion, again a 7% higher than the predicted value. Broadband’s total earnings were 351k, which dropped below the projected values. Video subscriber losses were 29k, while the Voice added 2k. Both these performed better than the projected loss.

The 4th quarter was the first time that Sky reported higher earnings after coming under Comcast®. The pan-European media company earned $5.0 billion, which surpassed the estimates by 10%. EBITDA stood at $765 million, yet again surpassing the projected values by 9%. The content sales of Sky showed a 36% growth, triggered by sports content. Comcast® foresees a 5% EBITDA growth in 2019. The company also bought back stocks worth $1.0 billion, which also rose above the estimated figure of $720 million.

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