Comcast’s worsening financial health, reported by its new CFO yesterday, has BusinessWeek predicting rough going ahead for the cable business. Consumers hit by the housing slump are cutting back on service, just as satellite and telecom competitors are cutting prices to get their attention. Comcast saw its stock tumble to a 20-month low after warning of below-predicted revenue and cash flow, and new subscriber declines.
"This is just the beginning," said one analyst, predicting more bad news as the housing slump continues to turn off demand while the price war intensifies. Comcast plans to respond to the dual pressures with a marketing blitz. "Competition's increased, and we've got to respond," the CFO told yesterday's conference call. Comcast traded at $18.18 yesterday, down 12%.