Digital Cable, Broadband Customers Propel Comcast to Q1 Gains

Apr 28, 2005  •  Post A Comment

Cable titan Comcast reported a 382 percent surge in first-quarter profit as the company saw gains in digital-cable and high-speed data customers.

The Philadelphia-based company, which last week inked a deal with Time Warner to acquire bankrupt cable operator Adelphia Communications, posted a first-quarter profit of $313 million, compared with a year-ago profit of $65 million. Revenue rose 9 percent to $5.4 billion.

The main growth drivers at the company were digital cable and high-speed data customer additions, the company said.

Digital cable’s growth was driven mainly by strong consumer interest in digital video recorders and video-on-demand, which helped lure 200,000 net new subscribers in the quarter. Comcast’s high-speed data business added 414,000 new customers in the quarter, bringing its high-speed data penetration to 18.3 percent. Overall, the cable unit reported a 10 percent rise in revenue to $5.1 billion.

Comcast’s content business also posted gains during the period, with revenue surging 21 percent to $213 million, driven mainly by strong results at the Golf Channel, which more than offset higher expenses associated with Comcast’s newer cable channels.