Comcast's Bundled Services Generate 1st-Quarter Profit Surge

Comcast Corp. said its first-quarter net income more than tripled, rising to $466 million, boosted by sales of bundled services to customers interested in the cable company's Internet, phone and on-demand video services.

Comcast's revenue rose 10 percent, to $5.9 billion, for the three months ended March 31, compared with the corresponding period a year earlier. And the company reported strong growth in other areas. High-speed Internet revenue rose 22 percent, to $1.1 billion, for the quarter, and pay-per-view video revenue rose 29 percent.

In its first quarter, the Philadelphia company set a record with 965,000 new subscriptions to at least one service, a 64 percent increase over the corresponding period in 2005, the company said. A household that signs up for Comcast's basic cable, Internet and phone services, for example, would represent three subscriptions.

Comcast's growth reflects consumer demand for alternative phone service, said cable and satellite analyst Craig Moffett of Sanford C. Bernstein & Co. It also suggests that cable operators are successfully turning cable, which is perceived to be an expensive service, into something that can provide a savings when services are bundled.

"It's an affirmation of how much of a difference adding voice [services] to the bundle can make," said Moffett, who has a "buy" rating on the stock.

In January, Comcast began offering a $99 "triple play" package of high-speed Internet, phone and cable TV services in certain markets. Phone service is now available in 45 percent of Comcast's markets -- with the Washington area expected to be added later this year.

Shares of Comcast were up 4 percent yesterday, closing at $30.35.