Black Ink Flows at America's Comcast Ahead of AT&T Deal

30 October 2002

US cable operator Comcast Corporation swung to a profit in its third quarter, as it prepares to complete its acquisition of larger rival AT&T Broadband.

The group, America’s third biggest cable-TV firm, posted Q3 net income of $75.6 million (€76.8m; £48.5m) – a considerable improvement on the $106.8m loss reported a year earlier – while revenues climbed 12.7% to $2.7bn.

Of Comcast’s different businesses, the fastest growth came at its broadband internet operations, where third-quarter revenue more than doubled year-on-year to $155.5m, as the number of subscribers rose by 169,800.

Its core cable operations increased sales by 12.3% (to $1.55bn) and customers by 0.7% (to 8.5m), while its QVC home shopping network saw revenues jump by 13% to $1.01bn.

Comcast expects to complete the merger with AT&T – which will transform it into America’s biggest cable-TV operator – next month. The value of the deal has tumbled from $72m when first struck to $47.5m as share prices have sunk.

Data sourced from: New York Times; additional content by WARC staff