Comcast and Charter Diverge: Spinoff vs Cox Deal

EarningsCorporate Action

โดย Insider Monkey·

Summary · why it matters

Comcast Corporation and Charter Communications reported second-quarter results that reveal two opposite strategies for tackling the shrinking broadband business. Comcast is spinning off NBCUniversal and Sky within a year, while its streaming service Peacock posted its first-ever profit of $189 million on 2 million new subscribers, reaching 48 million total. Charter, meanwhile, is closing its $21.9 billion acquisition of Cox Communications to gain scale, even as it lost 172,000 broadband customers and cut its full-year profit outlook to a roughly 1% decline. Comcast lost 167,000 broadband customers, and its profit fell to 99 cents a share from $2.98 a year earlier. Hedge funds favor Comcast, with 78 holders versus Charter's 48, though both saw reductions from the prior quarter.