Credit: Shutterstock photoComcast ( CMCSA ) is bullish on China as its core cable TV business in the U.S. faces challenges from internet video competition.
Comcast on its third-quarter earnings call Thursday said it expects more than a billion dollars in revenue in China after a theme park opens in Beijing around 2020.
"China is a big opportunity. We made virtually no money in China five years ago," said Steve Burke, chief executive of Comcast's NBCUniversal entertainment business. "This year we'll make a couple of hundred million dollars in (revenue), primarily in film, video-on-demand and consumer products. When that Beijing park opens it's not unrealistic to assume we'll make well over a billion dollars in (revenue)."
Comcast plans to open a new theme park in Beijing, with local partners, in 2020.
Comcast was asked to comment on China by one analyst amid recent political developments. China's Communist Party this week gave President Xi Jinping a second five-year term that runs through 2022 and he may stay on beyond that, observers say.
China's government has stepped up scrutiny of technology firms recently. The government has asked tech companies to offer the state a stake in them and a role in corporate decisions, said a report. The government has also cracked down on content posted on social media platforms.
Comcast, meanwhile, has declined to comment on whether it's looking to sell its 45% stake in movie studio Oriental DreamWorks. Comcast bought DreamWorks Animation last year for $3.8 billion.
Walt Disney ( DIS ) opened its new Shanghai theme park last year. Local real estate conglomerate Dalian Wanda Group has backed away from plans to compete in theme parks.
Comcast said third-quarter adjusted earnings were 52 cents a share, up 13% from a year ago, topping estimates, but revenue slipped 1.6% to $20.98 billion, worse than expected.
Analysts expected Comcast to report earnings of 50 cents on sales of $21.04 billion for the period ended Sept. 30.
A year earlier, Comcast earned 46 cents a share on sales of $21.32 billion. Year-earlier results were boosted by the Summer Olympics in Brazil, which lifted advertising revenue at NBCUniversal.
Comcast says its broadband business is well-positioned even if it loses more video subscribers to web video competition.
Shares in the media, telecommunications and entertainment company dropped 1.5% to close at 36.27 on the stock market today .
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
