Comcast Profit Tops Estimates With Broadband Customers

Comcast reported profit that beat estimates as new high-speed Internet customers more than made up for declining video subscribers.

Cable operators like Comcast are relying more on broadband users for revenue growth as new TV subscribers are harder to come by. More content is being offered via online services like Netflix Inc. and HBO’s upcoming online subscription, encouraging cable customers to cut the cord. The increasing reliance on broadband sign-ups is helping boost profit margins, according to David Heger, an analyst at Edward Jones & Co. “From the point of view of a cable company, you really want to see broadband growth more so than cable-TV growth because it’s much more profitable,” Heger, who has a buy rating on the stock, said in an interview before the earnings release. “For a Comcast, it’s really broadband and a bigger push into the business market” that are fueling growth, he said.