2Q Good, Thursday Bad for Comcast
By Mike Farrell -- Multichannel News, 8/1/2002 1:06:00 PM
Comcast Corp. stock was hammered Thursday despite the MSO reporting its best quarterly operating cash flow in five years, fueled by strong growth in digital-cable and high-speed-data subscribers.
Revenue at the cable unit was up 12 percent in the second quarter to $1.5 billion and operating cash flow rose 15.3 percent to $653 million. In a conference call with analysts, president Brian Roberts said the quarterly cash flow increase was the company's best in five years.
And still, Comcast stock plunged nearly 9 percent, down $1.79 per share to close at $19.11.
During the conference call, executive vice president and treasurer John Alchin said the cable unit contributed 75 percent of the free cash flow in the period.
Digital growth was strong in the quarter, with subscribers rising by 198,000 to 2.7 million. The strong growth spurred Comcast to increase its guidance for digital growth for the year to between 700,000 and 800,000 subscribers, instead of the previously expected 600,000 to 700,000.
High-speed-data revenue nearly doubled in the quarter compared with last year to $139.6 million from $69.3 million. High-speed-data subscribers rose 12.3 percent (128,000 customers) over the first quarter of this year to 1.17 million.
Roberts said the pending merger with AT&T Broadband is on track to be completed in the fourth quarter. However, he declined to be specific regarding reports that AT&T Corp. and AOL Time Warner Inc. were close to unwinding their Time Warner Entertainment partnership.
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