Comcast’s Roberts: Promises ‘Very Disciplined Approach’ To Any Acquisitions

Brian Roberts

Unsurprisingly, Comcast (NSDQ: CMCSA) executives are not commenting on rampant reports that the company is on the verge of purchasing a stake in NBC Universal (NYSE: GE). But during the company’s earnings call, executives went out of their way to repeatedly say that they would be “disciplined” in their approach to acquisitions. Comcast CEO Brian Roberts started off the call by acknowledging what he referred to as “rumors” and saying that that the company would only look at opportunities in its “core businesses” that could “accelerate growth” and provide scale. “We will continue to have a very disciplined approach as we evaluate these opportunities,” he said.

During his own remarks, CFO Michael Angelakis said any investment “has to reinforce our competitive advantages and generate attractive returns for our shareholders.” Despite saying they would not take questions related to acquisitions, executives were still asked about the regulatory scrutiny a hypothetical deal could get. Roberts said it wasn’t a “red flag,” noting that “there is a mood — between the stimulus and other signs the (Obama) administration has made — that they want to have a constructive environment.”

On the digital front, executives reaffirmed that the TV Everywhere initiative would be launched nationally in December. So far, Roberts said test users have reacted very positively. “At the end of the day, I think it’s going to be a very successful new initiative,” Roberts said. They also said the company’s All-Digital project — to switch its systems from analog to digital delivery — was progressing, with Portland and Augusta now completely turned over, along with significant percentages of several other cities.

As for the company’s advertising business, Angelakis said it was improving, noting that ad revenue would have only fallen 10 percent, excluding the impact of political advertising. That compares to a 25 percent plunge during the second quarter. He also said that local cable advertising revenue appeared to be “stabilizing.” Going into next quarter, however, Angelakis said ad revenue would continue to be weak, in part because the company generated $78 million in political ad revenue during the fourth quarter a year ago.

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