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Comcast's Growth Slows

Company falls short of several key metrics due to 'challenging economic environment'

By Nick McMaster,  Newser Staff

Posted Dec 5, 2007 2:13 PM CST

(Newser) – Comcast believes its business will fall short of predictions as a declining economy and strengthened competitors slow the cable giant’s growth. The Wall Street Journal reports the firm will add 500K fewer subscribers than it had previously expected, and expects to pay out 5% more in capital spending than predicted by earlier forecasts. The firm's shares have fallen 30% this year.

The nation’s largest cable provider is feeling the effects of the slowed housing sector, which squeezes new demand for their services. Competition with satellite providers such as DirecTV is also taking a bite out of traditional cable. "We are seeing increasing competition and a softer economy and, as a result, a slightly slower growth rate” said Comcast’s co-CFO.

The Comcast Center skyscraper, center, stands above other buildings in Philadelphia in this Oct. 10, 2007 file photo. Comcast said today that its growth is expected to slow more than previous estimates had anticipated. (AP Photo/Matt Rourke, file)
The Comcast Center skyscraper, center, stands above other buildings in Philadelphia in this Oct. 10, 2007 file photo. Comcast said today that its growth is expected to slow more than previous estimates...   (Associated Press)
A technician for Comcast Corp. heads out on a job in this Feb. 2, 2006 file photo in Salt Lake City. Comcast Corp. shares plunged to a new annual low Wednesday, Dec. 5, 2007 after the cable operator said 2007 revenue will be lower and expenses higher than previously forecast,...
A technician for Comcast Corp. heads out on a job in this Feb. 2, 2006 file photo in Salt Lake City. Comcast Corp. shares plunged to a new annual low Wednesday, Dec. 5, 2007 after the cable operator said...   (Associated Press)
A sign bearing Comcast's name hangs in the lobby of its state headquarters in Sandy, Utah. in this Nov. 3, 2005 file photo.  Comcast Corp., the nation's biggest cable TV systems operator, said Thursday, Oct. 25, 2007 that its third-quarter profit fell 54 percent and new customer additions slowed amid...
A sign bearing Comcast's name hangs in the lobby of its state headquarters in Sandy, Utah. in this Nov. 3, 2005 file photo. Comcast Corp., the nation's biggest cable TV systems operator, said Thursday,...   (Associated Press)
Comcast CEO Brian Roberts is shown in his Philadelphia office in this July 30, 2007 file photo. (AP Photo/George Widman, file)
Comcast CEO Brian Roberts is shown in his Philadelphia office in this July 30, 2007 file photo. (AP Photo/George Widman, file)   (Associated Press)
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