Comcast raises dividend as cable subscriber growth returns

US cable operator Comcast showed a continued improvement in TV subscribers in the fourth quarter of 2015, adding a net 89,000 new customers, its best quarterly performance in nine years. The gradual improvement over the course of 2015 meant the company lost only 36,000 TV subscribers over the full year, to finish 2015 with a total base of 22.347 million. In broadband, Comcast had its tenth consecutive year of more than 1 million new customers. Net broadband additions totaled 1.367 million in the year and 460,000 in Q4 to reach a total of 23.329 million subscribers. Telephony net additions reached 282,000 in 2015 and 139,000 in Q4, for a total base of 11.475 million. 

Comcast also passed 10 million triple-play customers, after net additions of 126,000 in the last quarter. Individual customers numbered 27.701 million at year-end, an increase of 281,000 compared to September and 666,000 more than at the end of 2014. The bigger customer base, along with price increases and customers taking higher-tier and more services led to a 5.9 percent annual increase in cable revenues in the fourth quarter to USD 12.0 billion. Operating cash flow for cable rose a slower 4.6 percent to USD 4.9 billion, amid higher costs for rolling out the X1 services, improving customer service, TV programming and marketing. Capital expenditure increased 10.2 percent year-on-year to USD 2.1 billion. 

NBCUniversal also showed higher quarterly results, with revenue up 13.0 percent to USD 7.5 billion, and operating cash flow increasing 8.7 percent to USD 1.5 billion. Comcast's net earnings were up 6.8 percent to USD 0.79 per share. After the strong results, which included a 9.4 percent rise in annual free cash flow to USD 8.9 billion, Comcast said it's increasing its quarterly dividend by 10 percent to USD 1.10 per share and will start a programme to buy back up to USD 5 billion of its shares.