Comcast posts quarterly profit

Comcast Corp, the largest US cable operator, on Wednesday posted a better-than-expected quarterly profit, but shares fell 4 percent on a disappointing decline in cable subscribers.
Analysts noted that rival satellite companies DirecTV Group Inc and EchoStar Communications Corp are making headway stealing customers from cable, which offset the positive impact of a $1 billion increase in Comcast's share repurchase plan.
"The market is reacting to the loss of customers," said Oppenheimer & Co analyst Thomas Eagan. "While it's customary to lose subscribers in the second quarter from seasonal factors, these losses were greater than expected and point to satellite companies gaining some ground."
Philadelphia-based Comcast posted second-quarter net profit of $262 million, or 12 cents a share, compared with a net loss of $22 million, or 1 cent a share, a year earlier.
Revenue rose 10 percent to $5.1 billion from $4.6 billion.
Analysts had expected a profit of 10 cents a share and revenue of $5 billion, according to Reuters Estimates.
The company said it lost about 96,000 basic cable subscribers during the quarter, or 0.4, percent, but total subscribers remained flat at 21.5 million from a year ago.
"We lost a little more than anticipated," said Comcast Chief Operating Officer Steve Burke in a conference call with analysts. "I think part of that is because we've had such a focus on driving margins...and obviously competition is stronger than ever."
Shares of rival cable companies Cox Communications Inc and Cablevision Systems Corp also fell on concern over subscriber losses, Eagan said.
Comcast slightly cut its full-year basic cable subscriber forecast, seeing subscribers essentially flat at 21.5 million, down from an earlier outlook of a 0.5 percent gain.
The company raised its 2004 forecast for operating cash flow, a metric preferred by cable companies that excludes depreciation and amortisation charges and other expenses associated with the capital intensive business.
It expects 18 percent operating cash flow growth for the year, up from its earlier expectation of 15 percent to 17 percent growth.