), the largest cable MSO of the U.S., is investing a substantial
amount in the theme parks of California and Florida. Through
this, the company intends to diversify its revenue streams beyond
its core telecommunications business (cable TV, high-speed
Internet and telephony).
Comcast owns Universal Orlando Resorts since 2011 as part of
its acquisition of NBCUniversal. The company is also preparing to
introduce a Harry Porter ride at a second theme park in the
Universal grounds - Universal Studios Florida. Comcast has also
entered into a 50-50 partnership with
Lowe's Companies Inc.
) to construct Cabana Bay Beach Resort with 1,800 rooms on the
Universal complex. Scheduled to open by the end of this year, the
Cabana Bay Beach project will raise the hotel room count at
Universal by 75%, bringing the figure to 4,200.
In the recently concluded quarter, the company's NBCUniversal
segment generated $6,464 million in revenues, up 7.5% year over
year. Operating cash flow was $1,338 million, reflecting a 14.3%
year-over-year rise. In 2013, the company's revenue from the
theme park and resort business stood at $2.2 billion while
operating cash flow was $1 billion.
We believe that Comcast's decision to venture beyond its core
telecommunications business will pose significant threat to
The Walt Disney Company's
) tourism business in Orlando and will also help in safeguarding
its position against rivals.
Last month, Comcast reached an agreement to acquire the second
largest cable MSO (multi-service operator) in the U.S. -
Time Warner Cable Inc.
). The deal is likely to be an all-stock one. Comcast will offer
approximately $159 per share of Time Warner Cable, which amounts
to a total consideration of around $45.2 billion. Each share of
Time Warner Cable will be converted into 2.875 shares of
Currently, Comcast carries a Zacks Rank #3 (Hold).
COMCAST CORP A (CMCSA): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
LOWES COS (LOW): Free Stock Analysis Report
TIME WARNER CAB (TWC): Free Stock Analysis
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