http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSN0630954720090806
TAMPA, Fla., Aug 6 (Reuters) - No. 1 U.S. cable operator Comcast Corp (CMCSA.O) lost more video subscribers than expected in the second quarter amid the weak economy and stiff competition from phone and satellite companies, but profit beat forecasts due to better cost controls and tax gains.
Profitability was aided by selling more high-end services like HD digital video recorders, and the slowdown in customer growth meant Comcast spent less on new installations and equipment.
The company resumed its share buyback program during the quarter.
Comcast executives said trends for the current quarter were looking better in terms of winning Internet and phone customers. But they said the recession and competition continue to slow customer growth.
"The weak economy continues to negatively impact the consumer, providing us with fewer opportunities to sell new services," Chief Financial Officer Michael Angelakis said on a conference call with analysts.
Angelakis said the company expects subscriber additions to "remain challenging" in the current environment.
Comcast lost more than 214,000 basic video subscribers during the second quarter, sending its total video customer base below 24 million. Its video customer losses were softened by the extension of the U.S. government-mandated digital TV transition to June 12. Analysts from Collins Stewart had expected Comcast to lose 165,000 subscribers.
Second-quarter net profit was 33 cents a share, 7 cents above the average forecast of analysts polled by Reuters Estimates.
Revenue rose 4.5 percent to $8.938 billion. Average revenue per subscriber rose 7.4 percent to $117.74. Comcast said results included favorable settlements related to federal and state taxes.
"The results were mixed, with financials doing better than we expected but subscriber additions missing our forecasts," said Thomas Eagan, an analyst at Collins Stewart. Continued...
Comcast loses more video subscribers;profits up
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