Comcast Posts Quarterly Loss; Sales Increase 20%

Comcast Corp., the cable-television operator planning to buy AT&T; Corp.’s cable unit, had an $88.9-million first-quarter loss, partly due to costs to buy and upgrade systems for digital TV and Internet service.

Sales rose 20% to $2.67 billion, more than analysts expected, as average monthly customer bills increased 8.5%.

The first-quarter loss of 9 cents a share compared with net income of $1 billion, or $1.04, a year ago.

President Brian Roberts told investors in a conference call that he’ll boost sales at the third-largest U.S. cable-TV operator by offering new services, including movies on demand, as growth of basic-cable customers slows. More than half the quarter’s 12% rise in cable revenue to $1.47 billion came from digital cable, with more channels and fast Web connections.

“Data and digital will be the growth drivers of the company,” said Alan Muschott, a money manager at Franklin Advisors, which holds 1 million Comcast shares among the firm’s $266 billion under management. In the first quarter, selling those products “paid off with better-than-expected growth.”

Comcast will meet the company’s previous forecasts, including cable unit revenue growth this year of as much as 12%, because it is selling new products, Treasurer John Alchin said in a conference call with analysts.

Comcast probably will announce agreements to show movies on demand from certain studios, Roberts said. He declined to identify them.

In addition to Comcast’s cable systems, the company owns stakes in networks including the E! Networks, Golf Channel and Outdoor Life Network.

Comcast said in February it will spend $3.15 billion in 2001 and 2002 to maintain and upgrade systems for new products. Average monthly bills increased to $40.10 from $36.95 a year earlier.

“The key here is to sell more products to the current subscriber base,” said David Baker, a money manager at North American Asset Management.