Comcast, Time Warner Cable Rise on Internet Potential

Comcast and Time Warner Cable, the two largest cable television companies in the US, reported better-than-expected earnings this week, sending their shares surging, largely on the strength of their Internet businesses.

The companies added nearly twice as many broadband customers in the first quarter as the combined total for Verizon Communications and AT&T. The cable companies also reaped more revenue on average from their TV customers, alleviating concerns that pinched consumers would hurt their core business. Time Warner Cable climbed 7.6 percent, the most in a year, while Comcast rose 6.3 percent, the most in almost five months. In almost 60 percent of the U.S., cable operators have no competition or compete only against the phone companies' older, slower DSL technology, making the cable companies the only option for those who want to surf the Web at high speed, according to Bernstein data. Comcast Chief Executive Officer Brian Roberts and Time Warner Cable's Chief Glenn Britt have both increased marketing of their high-speed Internet services and cited their growth potential.