Comcast Chief Sees Stability
NEW YORK, (
) --
Comcast's
(CMCSA) - Get Report
spending cuts and modest sales growth helped the cable giant book a solid first quarter.
The Philly cable shop says that after three years of stiff competition, more customers are coming back, and that ad spending, which had been in a severe slump, was improving.
Despite losing 82,000 video customers, Comcast sold more Internet and phone services, which pushed revenue-generating units, or RGUs, up by more than 1 million or 4.9% higher than year-ago levels.
Losing "80,000 is a negative you don't want to have," CEO Brian Roberts said on
CNBC
Wednesday, adding that growth in other products had more than offset the declines.
Now, about four years into a bruising TV service battle with phone companies like
Verizon
(VZ) - Get Report
and
AT&T
(T) - Get Report
, as well as
Dish
(DISH) - Get Report
and
DirecTV
(DTV)
, Roberts said Comcast was "starting to win back as much as we are losing."
Signs of stability were also evident in the advertising market, said Roberts, a part of the business that was punished during the financial crisis.
"There's a feeling that the worst is behind us," said Roberts, referring to ad spending.
Comcast posted earnings of 31 cents a share, up from the 27 cents in the year-ago period and roughly in line with analysts' expectations. Sales for the first quarter were $9.2 billion, up 3.8% from the $8.86 billion last year, and better than the $9.15 billion analysts were looking for.
Operating cash flow increased 3.5% to $3.5 billion, a bump up that was assisted by steep capital spending cuts in the quarter. Comcast says capex, or investments in its network expansion and upgrades, fell 20% to $925 million, as the company grew more tightfisted in a tough market.
On the pending $7.5 billion deal to own 51% of a joint programming venture between Comcast and NBC Universal, Roberts told CNBC that "we are somewhere in the middle" of the regulatory review process.
Roberts said he was "still very optimistic" about the deal's approval. "We want to evolve our company and not stand still and that's what this deal is about."
Comcast shares were up 71 cents, or 4%, to $19.17 in premarket trading Wednesday.
--Written by Scott Moritz in New York.