Comcast Forms Programming Unit

In its push to become more than just a cable provider, Comcast Corp. announced Thursday that it had created a group to oversee its growing stable of channels under the direction of a former News Corp. executive.

Jeff Shell will join the nation’s largest cable operator in May as president of Comcast Programming. The new unit includes cable investments and such channels as E! Entertainment Network, Style, G4, Golf Channel, Outdoor Life Network and regional sports channels. Comcast also is developing three new channels with Sony Corp.

Shell had been expected to join Philadelphia-based Comcast since stepping down in December as chief executive of Gemstar-TV Guide International Inc., which is 41% owned by News Corp.

Shell, who also helped build News Corp.’s sports and entertainment cable group, said he hoped to improve the finances of the group by sharing costs and to “help make sense” of Comcast’s burgeoning sports networks. He said he also planned to expand Comcast’s local news channels in large markets to take advantage of advertising opportunities.

In a conference call with investors Thursday to announce Comcast’s fourth-quarter results, Chief Executive Brian Roberts said the company preferred to develop channels but also was looking for acquisitions.

“We don’t see anything for sale,” said Roberts, whose ill-fated bid a year ago for Walt Disney Co. was seen by some on Wall Street as a vote of no-confidence in the cable business.

“There’s been an expectation of bad news, but there’s been very little evidence so far in Comcast’s numbers,” said Craig Moffett, an analyst at Sanford C. Bernstein & Co. “The company meets its targets quarter after quarter after quarter, and that’s hard to find.”

Comcast met Wall Street expectations again Thursday, posting a 10% increase in profit for the fourth quarter, driven by the strength of its high-speed Internet access business.

The company reported net income of $423 million, or 19 cents a share, for the quarter ended Dec. 31, up from $383 million, or 17 cents, in the same period a year earlier. Revenue was up 10%, to $5.24 billion.

Comcast staved off competition from satellite and phone rivals during the quarter, adding 437,000 high-speed Internet customers, for a year-end total of 7 million. It added 60,000 basic cable subscribers, ending the year with 21.5 million.

Some on Wall Street were disappointed that Comcast’s capital spending wasn’t decreasing more rapidly now that it has finished rebuilding its plant with digital technologies.

“They are spending more to achieve the same revenues,” said analyst Richard Greenfield at Fulcrum Global Partners.

Roberts said the company was investing in new offerings such as video-on-demand and telephone service that would provide growth once the high-speed Internet business tapers off.

Asked about Comcast’s joint bid with Time Warner Inc. for Adelphia Communications Corp., Roberts said he could not disclose details.

“We’re not necessarily out there trying to get bigger for bigger’s sake,” Roberts said. “This is an opportunity to look at properties that are underperforming.”