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story category Comcast Posts Higher Profit
Nervous investors get a gift. company may buy Plaxo
(old news - 10:11AM Thursday Feb 14 2008)
tags: competition · business · cable · Comcast
Tipped by Comcablrtl See Profile
Comcast's stock has taken a beating of late for a variety of reasons. All the talk of FiOS has many of them worried, as did the looming (and so far unfounded) rumor that the company was interested in making a major wireless broadband play. But the company's fussy investors got a gift this morning with Comcast's fourth quarter earnings results, which bested most analysts' estimates. The company reported higher than expected profit for Q4, and announced a new annual dividend payout for shareholders.
Comcast Corp. announced plans for its first dividend in nearly a decade and committed to a timeline for buying back nearly $7 billion in stock, a salve to investor complaints the cable giant isn't friendly to shareholders. The moves Thursday come as Comcast's stock price has withered and just a month after one of the company's biggest investors accused Comcast of a litany of missteps and called on the company to commit to shareholder givebacks, including a dividend.
While the company continued the industry-wide trend of losing basic video customers with 94,000 departures, Comcast added 523,000 digital video subscribers. The company also added 331,000 broadband customers, and continued their dominance of the VoIP industry by adding 475,000 VoIP customers. There's some interesting additional commentary by Larry Dignan over at ZDNet, who insists that $42.44 is the number consumers should be watching:
That sum, which was disclosed in Comcast’s fourth quarter earnings (Techmeme), is the company’s monthly average revenue per subscriber–a metric that would indicate pricing pressure from the likes of Verizon and AT&T...Comcast’s fourth quarter average revenue per subscriber was down from $42.86 in the third quarter and $42.89 a year ago. Simply put, increased competition has cost Comcast 42 cents in lost revenue on average. Perhaps, that saved you about 42 cents off your bill in the last three months.
As we've noted, AT&T and Verizon are by and large engaging in non-price competition with Comcast, a benefit of a market that maintains the illusion of competition, but in reality offers very little. As an aside, we're seeing rumblings this morning that Comcast, ever afraid of the dumb pipe, is buying social networking outfit Plaxo.

Related:
  1. Comcast Expands DOCSIS 3.0 In Bay Area
  2. 'Free' Comcast TV Coming To Fancast
  3. Comcast: What Recession?
  4. Still Waiting On Faster AT&T Speeds, Line Bonding
  5. Comcast 50Mbps To See Price Cut
  6. Comcast Brings 50Mbps To DC
  7. Comcast Targets Frontier/Verizon Customers
  8. Verizon: Cut Your Landline To Save Money
Forums » Comcast Posts Higher Profit
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spewak
Kiss It, Kiss It Real Good
Premium
join:2001-08-07
Elk Grove, CA
·SureWest Internet
·FrontierNet Intern..

Higher Profit =

Higher cable bills in about 6 months.

Comcast Corp. announced plans for its first dividend in nearly a decade and committed to a timeline for buying back nearly $7 billion in stock, a salve to investor complaints the cable giant isn't friendly to shareholders.

Gotta keep those investors happy!
--
The weekend is here, grab a can of beer!

LiamJunket
Premium
join:2002-03-03
Ocean City, NJ
·Comcast

Re: Higher Profit =

said by spewak See Profile :

Higher cable bills in about 6 months.
The cost of programming(what they pay to Hollywood for content) went up 7%. And that is why your cable bill keeps going up.
--
Internet News
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Rickez
Goinginsane

join:2000-09-02
Three Rivers, MA

Re: Higher Profit =

Is that also why commercial content is at an all time high?
--
Got a one way ticket, going the wrong way....
openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

said by spewak See Profile :

Gotta keep those investors happy!
Considering investors own the company...yes!

Rick
Premium,MVM
join:2001-02-06
Waterbury, CT
clubs:

What else can you say except...

WOW.

Comcast added 523,000 digital video subscribers. The company also added 331,000 broadband customers, and continued their dominance of the VoIP industry by adding 475,000 VoIP customers.

Talk about some incredible growth numbers.

And..here are the numbers for the year..
Added 2.5 million new digital cable subscribers in 2007
Added 1.7 million high-speed Internet subscribers during 2007
Added over 2.5 million Comcast Digital Voice (CDV) customers in 2007

Way to go Comcast.
All your efforts of the last decade are paying off bigtime.
--
The Coyote captured the RR! Roadrunner Rick is now Comcastic!
notwrth10

join:2007-03-03
1001EB

Re: What else can you say except...

Yea I guess once that consumerist leak was plugged I guess they wouldn't have any problems fooling new customers would they?

major marco
Res Firma Mitescere Nescit
Premium
join:2003-02-13
Stepford, CA
clubs:


2 edits

Duh 101

When you throttle bandwidth and spoof RST packets to cherry pick traffic to "manage" your network, all the while charging customers jacked up rates for "unlimited" Internet access, which is really very limited, of course you're going to turn a tidy profit. You never have to upgrade your infrastructure - Just keep adding customers, taking their money and cherry picking traffic.
reelbigfish

join:2002-06-06
Boston, MA
·Comcast
·Comcast Digital Vo..

Re: Duh 101

Comcast doesn't advertise their connection as unlimited so your point is moot. Many people feel they have a good deal with Comcast, as do I. I get much more from my Comcast connection then I could get from the other two providers in my area. For the entertainment I get for my $122.50/month, I think it is a great deal. That price includes an HD DVR, phone and internet. I hope they keep providing the good service they have been to my area.

LiamJunket
Premium
join:2002-03-03
Ocean City, NJ
·Comcast

said by major marco See Profile :

You never have to upgrade your infrastructure - Just keep adding customers, taking their money and cherry picking traffic.
They spent $6.1 billion upgrading infrastructure. And they also paid $1.8 billion in income tax to Uncle Sam.
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Internet News
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JSRoman
Premium
join:2005-03-10
Callahan, FL

Re: Duh 101

said by LiamJunket See Profile :

said by major marco See Profile :

You never have to upgrade your infrastructure - Just keep adding customers, taking their money and cherry picking traffic.
They spent $6.1 billion upgrading infrastructure. And they also paid $1.8 billion in income tax to Uncle Sam.
You and those freaking facts!
--
»www.seabee.navy.mil

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
·Comcast

said by LiamJunket See Profile :

And they also paid passed down to their customers in the form of higher prices $1.8 billion in income tax to Uncle Sam.
Fixed it for you... some people on these forums dare to think consumer prices aren't high enough.
--
This isn't fair! I was only supposed to hate just ONE presidential candidate!

Apathas

@comcast.net
Actually they did when I first started using comcast.

Chuckles
Premium
join:2006-03-04
Saint Paul, MN
Comcast doesnt take peoples' money. Comcast accepts peoples' money.
--
kustomerservice.net

CableTool
Poorly Representing MYSELF.
Premium
join:2004-11-12

said by major marco See Profile :

When you throttle bandwidth and spoof RST packets to cherry pick traffic to "manage" your network, all the while charging customers jacked up rates for "unlimited" Internet access, which is really very limited, of course you're going to turn a tidy profit. You never have to upgrade your infrastructure - Just keep adding customers, taking their money and cherry picking traffic.
So which one is it? They will loose customers by shaping or they will gain more customers by shaping?
You cant have it both ways.
People bitch and bitch that Comcast will go under because of their network management, then when they turn a profit, its BECAUSE of network management.
Awesome world you live in. I think I married someone just like you...
--
CableTechs.org/"Horrible People with Integrity"
SilverSurfer

join:2007-08-19


2 edits

Re: Duh 101

said by CableTool See Profile :

I think I married someone just like you...
Wait a minute...you're married to a man? I think that's another topic for another thread.

spewak
Kiss It, Kiss It Real Good
Premium
join:2001-08-07
Elk Grove, CA
·SureWest Internet
·FrontierNet Intern..

Re: Duh 101

said by SilverSurfer See Profile :

said by CableTool See Profile :

I think I married someone just like you...
Wait a minute...you're married to a man? I think that's another topic for another thread.
*object*
--
The weekend is here, grab a can of beer!
SilverSurfer

join:2007-08-19

Re: Duh 101

said by spewak See Profile :

*object*
I don't see why - you did say you were married to someone like marco and since marco appears to be male, it would seem you've got deeper issues than disagreeing with a stranger about how great Comcrap is.

CableTool
Poorly Representing MYSELF.
Premium
join:2004-11-12

Re: Duh 101

said by SilverSurfer See Profile :

said by spewak See Profile :

*object*
I don't see why - you did say you were married to someone like marco and since marco appears to be male, it would seem you've got deeper issues than disagreeing with a stranger about how great Comcrap is.
That was a very lame and poorly thought out troll.
If I was married to someone like you I would have married an A-Hole.
Maybe Im queer as a $3.00 bill. I still dont see what your point is.
--
CableTechs.org/"Horrible People with Integrity"

spewak
Kiss It, Kiss It Real Good
Premium
join:2001-08-07
Elk Grove, CA
·SureWest Internet
·FrontierNet Intern..

said by SilverSurfer See Profile :

said by spewak See Profile :

*object*
I don't see why - you did say you were married to someone like marco and since marco appears to be male, it would seem you've got deeper issues than disagreeing with a stranger about how great Comcrap is.
I was objecting to the fact that you had to go that route. Not necessary here.
--
The weekend is here, grab a can of beer!

jgkolt
Premium
join:2004-02-21
Lakewood, OH
clubs:

higher profit

means more money from the consumer which means to continue the growth and reduce capital expenditures they need to do whatever possible. does this mean they get to buy more sandvines?
--
3 free for you/3 free for me: Free Stock Trades : PM Me

fishmaster
Premium
join:2004-10-08
Rockford, IL

Re: higher profit

Probably... They may also get some more of those Nebuad devices installed (Free) and charge the customer for (maintenance) & call it increased value for services/latency.

cypherstream
Looking forward to the future of things.
Premium,MVM
join:2004-12-02
Reading, PA
clubs:


1 edit

Q4 high profit, of course!

When Comcast in my area raised prices in November (earlier than the usual January rate increase), and didn't add any new channels or even roll out the 16/2 Blast Tier, of course their profits will skyrocket.

Charge more money...
Don't spend a dime on system improvements...
End up with a surplus!

Boogeyman
Drive it like you stole it
Premium
join:2002-12-17
Huntsville, AL

Re: Q4 high profit, of course!

Yeah, I dont quite get it either...

Comcast: We're making record profits!

Consumer: Cool, maybe you'll be able to offer more and better service!

Comcast: Well, upgrading is expensive and we cant really afford it right now... But check out these bonus's our shareholders are getting!
jester121

join:2003-08-09
Lake Zurich, IL
·ViaTalk

Re: Q4 high profit, of course!

said by Boogeyman See Profile :

Comcast: Well, upgrading is expensive and we cant really afford it right now... But check out these bonus's our shareholders are getting!
How dare the owners of the company expect to receive a return on their investment!?!! The government really should be taking all that profit away and mailing out even bigger checks in May.

Boogeyman
Drive it like you stole it
Premium
join:2002-12-17
Huntsville, AL

Re: Q4 high profit, of course!

Wow, some people really have to bring the government into everything.

How about the company just uses some of the record profit they made off of thier customers to offer thier customers a better service so they will stay customers and continue to give the company money. Ya know, so they can continue to make profits?
jester121

join:2003-08-09
Lake Zurich, IL

Re: Q4 high profit, of course!

I swear I hit the "sarcasm" tag but it didn't appear in the post.
openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

said by cypherstream See Profile :

Don't spend a dime on system improvements...
See TK's fact above about Comcast invested $6.1B into their infrastructure. Sad how people around this forum continue to purport misinformation.

cypherstream
Looking forward to the future of things.
Premium,MVM
join:2004-12-02
Reading, PA
clubs:


2 edits

Re: Q4 high profit, of course!

Sad how none of that went into Central through Eastern PA.

While yes it's very nice to hear about the Bay area in California upgrading to 1 GHz, and the New England region getting loads of new HD channels, as well as Florida, Georgia, Washington state, Virginia. Spending tons of money on older antiquated acquired systems from Adelphia, TWC, and various other small MSO's they've gobbled up.

Keep spending that $6.1B in every state but your home state Comcast.

Raise prices in an area you don't spend money on ahead of schedule,
Don't upgrade anything in that area,
Profit!

MrChupacabra
Premium
join:2003-03-26
Florida
·Bright House
·Cingular Wireless

Re: Q4 high profit, of course!

The comcast home state is Mississippi actually.

And you can't upgrade everything all at once. Upgrades are a targeted strategy. The areas that need it the most due to a variety of things get it first.

Yes this can mean that the areas they can make the most money from get it first. That way they can pay to get your area up to speed as well.

Or maybe you have something else entirely different going on in the background of your market.
--
Hello boys and girls, I'm back!
moonpuppy

join:2000-08-21
Glen Burnie, MD

Buying back stock?

$7 billion dollars worth of stock they are trying to buy back?

Me thinks Comcast doesn't care about their investors and wants a bit more control.
openbox9

join:2004-01-26
Alexandria, VA

Re: Buying back stock?

If I were an investor, I'd be extremely happy about a stock buy back. Lowers the float therefore raising the value of my shares. Successful and profitable companies announce stock buy backs all of the time.
jester121

join:2003-08-09
Lake Zurich, IL
Me thinks you should go learn about how equity markets work.
mrweirdo

join:2004-09-12
Roseville, CA


1 edit

Plato

well there goes plaxo down the crapper..
of late they have realy been improving their service mostly becuause of the fact they actualy bothered to listen to user feedback and suggestions which is something totaly against the nature of comcast.

I use Plaxo myself to help manage synching of address books and calender between multiple apps and sites like google as well. It also serves as an online backup as well. There are no alternatives out there to right now. So I'm not sure what many others like myself will do if Comcast buys up Plaxo.
mrweirdo

join:2004-09-12
Roseville, CA

Re: Plato

dangit for some reason my iPod touch keeps wanting to replace Plaxo with the word Plato ah well I'll hopefully fix those when I get home

PGHammer

join:2003-06-09
Accokeek, MD
clubs:
·Comcast

Plaxo has a deal with Comcast (in terms of plug-ins for the e-mail side of their HSI service) that mirrors a similar deal with AOL. However, with AOL shedding customers, Plaxo needs more income, so a Comcast deal makes sense (since it's unlikely that TWQ is interested).

Mr Anonymous

@comcast.net

Comcast must DIE!!!

Once again, Comcast shows a NET profit of over $2,000,000,000,
yet the bastards still refuse to upgrade my cable system.

Comcast can burn in hell, with satellite dishes crammed up you-know-where!
>:-(
Forums » Comcast Posts Higher Profit


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