PHILADELPHIA (AP) — Promotional offers and higher cable television spending fueled the first-quarter profit of Comcast, which showed limited effects from an economic slowdown.
The company posted a 12.5 percent decline in profit on Thursday, compared with a year-ago quarter that included a large gain. The latest quarter included a $144 million gain related to the breakup of a partnership with Insight Communications. Results in the prior year’s first quarter included a $300 million gain related to the transfer of cable systems. Excluding gains, earnings actually rose by 9.5 percent.
Comcast also confirmed its financial outlook for 2008 despite economic headwinds.
Investors cheered the unexpected news, driving shares up 8.6 percent, or $1.76, to $22.31.
Comcast, which is based in Philadelphia, posted net income of $732 million, or 24 cents a share, compared with $837 million, or 26 cents a share, in the quarter a year ago.
Excluding one-time gains, Comcast said quarterly profit was $588 million, or 19 cents a share, compared with $537 million, or 17 cents, last year.
That matched the average expectation of analysts surveyed by Thomson Financial.
Revenue was up 14 percent, to $8.39 billion, in the latest quarter. Analysts were expecting $8.17 billion.
Operating income was up 23 percent, to $1.55 billion, while free cash flow — an important indicator for typically debt-laden industries like cable — soared by 59 percent, to $702 million.
