Comcast Drops Disney Offer

Comcast reported net income of $65 million, or 3 cents per share, for the first quarter ended March 31. The Thomson First Call consensus was for a 7-cent gain, though expectations varied from a one-cent loss to a 17-cent gain. In the first quarter of 2003, Comcast reported a loss of $355 million, or 16 cents per share, excluding the results of the home shopping channel QVC. (Comcast sold its majority stake in QVC to fellow owner Liberty Media last September.)

Companywide revenue for the quarter amounted to $4.91 billion, ahead of the $4.84 billion First Call consensus. Operating cash flow of $1.73 billion matched up to the $1.74 billion consensus.

At the cable operations, revenue grew 10% to $4.65 billion, in the range of forecasts such as Banc of America's $4.66 billion and Credit Suisse First Boston's $4.58 billion.

Operating cash flow for the cable operations, or earnings before interest, taxes, depreciation and amortization, grew 21% to $1.72 billion.

In the quarter, the company added 35,000 subscribers to basic cable service and 394,000 high-speed Internet customers, both in the range of expectations.

Disney Doings

The Disney board, which last month replaced Eisner with independent director George Mitchell as chairman of Disney's board of directors, also issued a resolution clarifying the duties of the suddenly non-executive board chairman.

The news emerged from the Disney board's annual retreat -- the board's first formal meeting since the annual shareholder meeting in early March in Philadelphia, when an overwhelming number of Disney shareholders voted to withhold their votes to re-elect Eisner to the board.

The vote reflected both dissatisfaction with Disney's corporate governance and concerns about the company's performance.

"As a result of the thorough review of Disney's long-term growth plan, the board is confident that the management team is executing against its strategic plan in order to continue to drive long-term shareholder value," the board said in Tuesday night's statement. "The board continues to have complete confidence in Michael Eisner, [Disney Chief Operating Officer] Bob Iger and the senior management team, and in their strategic growth plan to continue to strengthen the company's position as the global leader in quality family entertainment."