Comcast revenues rise 14%, profits slip

Comcast Corp., the nation's largest cable company, slowed its loss of video customers in the first quarter as revenue rose 14 percent and profits fell on the impact of special items.

Revenue in the Philadelphia giant climbed to $8.34 billion from $7.39 billion. Net income was $732 million, or 24 cents, compared with $837 million, or 26 cents a share, a year ago.

The company had a one-time gain of $300 million in the first quarter of 2007 and a gain of $144 million in this year's period.

"Our results for the first quarter mark a solid start to 2008," said Brian Roberts, chairman and chief executive officer. "Our performance demonstrates that our operating strategy is working in an economic and competitive environment that continues to be challenging."

The company also said that free cash flow, an important financial measure for the company, jumped almost 60 percent to $702 million in the first quarter from $442 million in the prior-year period. Capital expenditures fell 2 percent, producing the free cash flow.

Comcast vowed earlier this year to aggressively market its services to halt market share erosion. It's now offering an "economy tier" high-speed Internet service priced at $24.95 a month and a "double play" service package.

The company also has said it will improve its customer service, a weak spot that competitors are attempting to exploit through TV and print advertisements.

As Verizon Communications Inc. and AT&T Inc. chew away at Comcast's video customer base, Comcast is taking land-line phone customers away from them and other phone companies. Comcast says it added 639,000 digital voice customers in the first quarter. For each video customer it loses, Comcast says it gains 12 phone customers.

Comcast noted that 68 percent of its new high-speed Internet customers converted from phone company DSL services.

Company shares closed at $20.55 in Nasdaq trading, up 29 cents from the previous day's close.