Comcast stock drops on earnings news - Broadcasting & Cable

Comcast stock drops on earnings news

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Comcast Corp.'s shares slipped Wednesday after the company's 2001 earnings report
spurred some analysts to trim their expectations for new product sales this
year.

The MSO's shares fell 7 percent to $32.04 each.

Comcast said it incurred big costs as it started to move high-speed-data
customers off the Excite@Home Corp. backbone and onto a new network. Excite@Home is going
out of business.

The $140 million in expenses sliced Comcast's cable cash flow for the fourth
quarter by 14 percent to $448.4 million.

Without those expenses, the cable systems' cash flow would have risen 12
percent to $588.4 million.

Revenues increased 11 percent to $1.4 billion.

Comcast president Brian Roberts said his biggest mistake last year was not
anticipating how quickly Excite@Home would deteriorate.

He had anticipated moving off the company's network this June, but he was forced
to start moving in October and pay a huge fee to keep the company alive a few
more months.

However, Comcast Cable Communications Inc. president Steve Burke noted that Excite@Home's problems were
slowing Comcast's ability to add new Internet customers, so it was better to get
the issue behind the company rather than letting it drag out.

Comcast forecast that 2002 cable cash flow would rise 12 percent to 14 percent and sales
would increase 10 percent to 12 percent.

Comcast Cable expects to add 600,000 to 700,000 digital-cable units and between
400,000 and 500,000 high-speed Internet customers.

Comcast also expects a $30 million loss in its start-up video-gaming network,
G4.

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