Comcast Cash Flow Boosted by Growth

Comcast Corp., the cable operator bidding for AT&T; Corp.’s cable unit, reported stronger cash flow, boosted by subscriber growth for its digital cable and high-speed data business, although its net profit declined in the second quarter.

The third-largest U.S. cable operator also raised its projection for its digital cable and high-speed data subscriber base for the year, but warned its capital expenditures to upgrade its systems would be higher than earlier expected.

Comcast reported second-quarter operating cash flow of $700.4 million, up 16% from $602.8 million a year earlier. Revenue rose 20% to $2.3 billion from $1.91 billion a year ago. Operating cash flow, a widely watched indicator for cable companies, excludes depreciation, amortization costs and other one-time expenses.

The company’s net profit declined to $35.2 million, or 4 cents a share, compared with a year-earlier profit of $180.1 million, or 19 cents a share.

Comcast raised its expectations for subscribers of digital cable by the end of 2001 to 2.2 million from 2 million. It also raised its high-speed data subscriber estimate to 950,000 by year-end from its earlier estimate of 750,000.