This morning, Comcast reported earnings, announcing an 8% increase in second quarter profits and an 11% rise in revenue. The stock is up more than 5% today.
While the nation’s largest cable operator lost basic video subscribers in the quarter, the losses were in line or better than what analysts had expected. Notably, Comcast, also the country’s second largest Internet service provider, showed that it was taking broadband market share from rival phone companies, which reported much weaker broadband gains.
Sanford Bernstein cable bull Craig Moffett estimated in a research note that “Comcast’s 278,000 broadband net additions alone represent 75% of the broadband market reported thus far…. Cable’s huge physical plant advantage–higher capacity and lower cost–is winning the day.”
By contrast, Verizon reported on Monday that it lost 133,000 DSL subscribers, while gaining 187,000 new customers for its fiber optic FiOS Internet service–yielding a net gain of 54,000 customers.