Comcast beats Q2 projections

Comcast yesterday posted second quarter profits that beat Wall Street expectations, but sank 81% compared to the same period last year. The company said its heavy upgrade and expansion efforts drove profits down year to year.

The No. 3 cable provider reported net income of $35.2 million or 4 cents per share compared to $187.7 million, or 20 cents per share for the same three-month period last year. Analysts anticipated a 31-cent loss for the quarter, according to Thomson Financial/First Call.

Revenue for second quarter 2001 was $2.29 billion compared to $1.91 billion for the same quarter last year.

In a conference call to investors, Comcast said the $512 million it spent in the second quarter to support network rebuilds represented the “peak level” of capital expenditure in its cable plant. As a result of the increased spending, the company reset its capital investment guidance for the year from $1.45 billion to $1.75 billion.

“We have terrific momentum in our cable operation… and we’re very confident of the second half of the year doing even better than we have in the first half of the year,” said John Alchin, executive vice president and treasurer at Comcast.

The company also revised its targets upward for the number of cable subscribers it expects for 2001 from 2 million to 2.2 million. Additionally, Comcast boosted its high-speed data subscriber projection for the year from 750,000 to 950,000.

For the year, the company reiterated its cash flow growth projection of 12% to 13% and revenue increase of 10% to 12%

“We remain very comfortable with the guidance we have out there,” Alchin said.

Comcast President Brian Roberts said the company would continue pursuing AT&T Broadband, which rebuffed Comcast’s $58 billion bid for its assets last month. In a SEC filing today, the company said it might seek proxies from AT&T shareholders and register Comcast shares with the SEC to be used in the proposed deal.