Comcast beats forecasts to ease pain of TWC deal failure

Comcast put the disappointment of its failed $45bn bid for Time Warner Cable behind it with first-quarter results that comfortably beat estimates thanks to broadband subscriber growth and a strong showing at its theme parks division.

The cable and internet provider added 407,000 broadband subscribers during the quarter, ending the period with almost as many broadband as video customers - 22.37m compared with slightly more than 22.37m.

But in the past few weeks the number of broadband customers has surpassed video, the company said.

Brian Roberts, chief executive, said Comcast was "moving on" from the TWC setback but would not be drawn on other possible acquisitions.

Deal speculation has intensified since the company ended its pursuit of TWC, with John Malone's Charter Communications reviving its interest in TWC. Charter had made a hostile bid for TWC last year but was trumped by Comcast's $45bn offer.

Comcast incurred $99m of costs relating to the TWC bid in the quarter, bringing the total spent on the deal to more than $300m. Mr Roberts said during an investor call that he had hoped to bring Comcast's technology and services to TWC's customers in markets such as New York and Los Angeles but "ultimately the government didn't see it the same way".

Earnings per share rose from $0.74 to $0.81. Excluding adjustments, earnings per share were $0.79; analysts had been expecting earnings per share to have been flat.

Net income rose from $1.9bn to $2.1bn, boosted by gains in the number of subscribers to its broadband services. Revenues rose from $17.4bn to $17.85bn.

Comcast is adding $2.5bn to its share buy-back programme, raising its total for this year to $6.75bn.

The performance of Comcast's NBCUniversal unit was boosted by the popularity of the Harry Potter attraction at its theme parks. Steve Burke, NBC's chief executive, told analysts the company planned to invest in the parks, adding a new attraction every year.

The theme parks in Orlando and California were generating $400m a year when Comcast acquired its first tranche of NBCUniversal in 2009. "This year they will do $1.3bn in operating cash flow," he said.

NBC was boosted by the film adaptation of Fifty Shades of Grey, which topped box office charts round the world.

The company also released Furious 7, which became the first Universal Studios film to hit $1bn in global box-office receipts, although the film was released early in the second quarter.

Comcast shares rose 2.2 per cent in early trading in New York to $58.41.

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