US Number One Cable Company Lifts Q2 Profits 65%

04 August 2005

Comcast Corporation, America's largest cable operator, on Tuesday flexed its fiscal pecs with a Schwartzenegger-like 64 percent press-up in second quarter profits.

Net profit rose to $430 million (€352m; £243m) from $262m, while revenue leapt 10.5% to $5.6bn. Cable profit margins rose from 39.7% to 40.8%.

In addition to delivering the dollars, Comcast also added 284,000 net new digital video subscribers in the seasonally weak second quarter, well ahead of Wall Street estimates, ending the period with 21.4 million basic video subscribers.

Also driving the numbers was customer uptake of digital video recorders plus high-definition TV services suitable for viewing on large flat-screen TVs.

But what makes Comcast bullish - really, really bullish - is Digital Voice, its new broadband internet telephony service.

Says ceo Brian Roberts: "We believe Digital Voice will be the next engine for growth and are ramping up the roll-out of this service in markets like Philadelphia, Indianapolis, Boston, Hartford, Chicago and Portland.

"We are on track to extend our offering to 15 million homes in twenty markets by year-end and expect to offer our fully featured digital voice service across our 41m homes by the end of 2006."

Data sourced from Financial Times Online; additional content by WARC staff