Comcast Reaches for Red Ink

07 February 2002

US cable group Comcast Corporation – the victor in the race to buy AT&T Broadband [WAMN: 20-Dec-01] – posted a net loss of $321 million in the fourth quarter, down from $778.5m profit a year before.

Revenues climbed 17% to $2.82 billion, with a 9.1% pro forma (excluding acquisitions) rise at its cable division and an 8.6% increase at its content business. Operating cash flow, however, slid 3.1% to $654.7m, hit by a $140m charge relating to the transfer of broadband web customers from bankrupt provider Excite@Home to Comcast’s own network.

For the whole of 2001, net income dropped to $608.6m from $2.02bn the year before, while revenue surged 18% to $9.67bn and operating cash flow 9.4% to $2.7bn.

Revenue growth is expected to total 10%–12% in the coming year, with operating cash flow rising 12%–14%.

News source: (US)