Comcast Trims Cash Flow Targets

The company added 46,000 Comcast Digital Voice customers, reflecting the rollout of CDV in new markets including Washington, D.C., Seattle, Baltimore and Denver. As expected, CDV customer additions were offset by a decline in the number of Comcast's circuit-switched telephone customers as Comcast transitions to marketing Comcast Digital Voice. As a result, Comcast Cable reported 12,000 net new phone customers in the third quarter of 2005. Cable phone revenue remained relatively unchanged from the third quarter of the prior year at $171 million.

The company reaffirmed full-year revenue and unit growth guidance, but cut cash flow guidance as a result of costs tied to the launch of NHL coverage on its Outdoor Life Network. The company trimmed operating cash flow growth guidance to 13% from the previous 14%-15% and cut its operating cash flow growth target to 30% from the previous 40%, citing rising capital expenditures tied to set-top box demand and Internet phone costs.

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