Comcast reveals $6.5bn buyback as it manages to keep hold of customers
COMCAST yesterday reported that it had significantly cut cable customer losses, and announced a dividend increase plus a $6.5bn (£4.1bn) share repurchase plan.
The largest cable company in the US lost 17,000 video customers in the fourth quarter, down from 135,000 subscribers in the same quarter in 2010.
It also decreased cable losses for the year by nearly 40 per cent over 2010. The company also added 1.2m high-speed internet customers.
Comcast announced it would increase its dividend 44 per cent to $0.65 per share on an annualised basis and said that its board of directors had authorised a $6.5bn stock repurchase programme, with $3bn in repurchasing planned for 2012.
The company reported net income of $1.29bn for the quarter, up 26 per cent from $1.02bn in the fourth quarter of 2010. The figures were slightly ahead of analysts’ forecasts.
For the year, NBCUniversal revenue of $21.1bn was up 3.7 per cent compared to $20.4bn in 2010.
Excluding the impact of the Vancouver Olympics in 2010, revenue increased 7.8 per cent, the firm said.
Not including costs related to the Olympics and Comcast’s acquisition of NBCU, NBCUniversal’s operating cash flow increased 5.2 per cent to $4.1bn.