Comcast Set To Broadcast Q2 Earnings – US-FOREX.US
Investors will be tuning in to second-quarter earnings from cable provider Comcast on Thursday morning to see whether it will echo Time Warner Cable’s disappointing comments regarding growth trends for the rest of the year. Exactly a week ago, Time Warner Cable
surprised the Street with sales growth and earnings that surpassed estimates. However, the company rained on its own parade as it warned of declining trends in subscriber growth and projected slowed sales through the second half of the year.The global economic crisis has been tough on cable providers as consumers trim extra expenses including landline phone service and pricey premium service packages. Continued weakness in the housing market has also hurt cable companies since moving provides an opportunity for providers to try to sell customers on new services and packages.Most consumers have been trading down to low-frills service and not cancelling altogether, but that could change if economic weakness persists and job opportunities remain bleak-especially as Internet sites make it increasingly easy for people to find and view free television programming. According to a recent survey from the Pew Internet and American Life Project, 22% of adults have cancelled or reduced their cable services. In response, Comcast
is taking a stab at online programming with a trial service called On Demand Online that allows Comcast subscribers to view full-length episodes and movies via Comcast.net and Fancast.com. The trial, which includes content from networks like BBC America, Food Network and IFC, is part of a joint effort between Comcast and Time Warner dubbed “TV Everywhere” to expand television content online. The market will be eager to hear any additional information from Comcast regarding the program’s progress.Comcast shares were down by 35 cents, or 2.3%, at 15.05, during Wednesday’s afternoon trading session ahead of its quarterly earnings release on Thursday. Analysts polled by Thomson Reuters are expecting second-quarter earnings of 26 cents a share and sales of 8.9 billion.
Thomson Reuters contributed to this article.