Dallas, Texas 07/22/2015 (Financialstrend) – Comcast Corporation (NASDAQ:CMCSA) is to post its second quarter results on July 23, 2015, as the Street remains bullish about the company’s prospects in the high-speed internet business. The pay-TV business might be slowing, but customer loss has slowed thanks to the company push to bundle packages as a way of enticing customers.
However, Pay-TV business could continue losing subscribers as more people shift their focus to streaming content, thanks to the high speed internet on offer from various networks
NBCUniversal Impressive Run
The NBCUniversal arm has been a key driver of Comcast Corporation (NASDAQ:CMCSA) earnings having been successful in the release of exciting films. The unit has already raked in $3.8 billion in revenues from the success of blockbuster films such as Furious 7, Jurassic World, Fifty Shades of Grey and Pitch Perfect 2.
NBCUniversal grew by 7.5% last year and looks set to maintain the momentum having generated revenues in the excess of $25 billion. The unit generates more than 32% in Comcast Corporation (NASDAQ:CMCSA)’s value thanks to its cable, broadcasting networks, theme parks and movie businesses.
Demand for High Speed Internet.
The contribution of the high-speed internet on Comcast earnings cannot go unnoticed, the subscription base having grown to 22 million this year from 13 million as of 2007. Use of multiple devices, as well as the rapid adoption of smartphones, has resulted in an increase in demand for high-speed Internet. The unit continues to grow thanks to the growing demand for high-speed Internet and decline of DSL network connections. Almost 50% of Comcast subscribers receive internet speeds clocking highs of 50Mbps.
High-speed Internet penetration currently stands at 76% and expected to grow to 90%, an indication of more room for growth for Comcast Corporation (NASDAQ:CMCSA) in this sector. The company is looking to grow its high internet business that currently controls 23% market share as it continues ti look for other avenues of growth away from the Pay-TV business