Citing an increasingly challenging economic and competitive environment, Comcast trimmed its financial guidance.
Revenue Generating Units (RGUs) are now expected to increase by approximately 6 million to 57 million, versus previous guidance of approximately 6.5 million additions. This represents a significant increase compared to the 5 million RGUs added in 2006. Comcast said this RGU growth is expected to contribute to cable revenue growth for 2007 of approximately 11%, compared to previous guidance of at least 12%, cable operating cash flow growth of approximately 13% as compared to previous guidance of at least 14%, and consolidated operating cash flow growth of approximately 13% as compared to previous guidance of at least 13%.
Cable capital expenditures are expected to be approximately $6.0 billion for the year, a 5% increase from originally issued guidance, reflecting increased advanced digital set-top box purchases, the Company’s digital acceleration program, expanded network enhancements and acquisition-related investments.
Reflecting the impact of all the items described above, Comcast’s consolidated Free Cash Flow is expected to be approximately 80% of 2006, compared to previous estimates of 2007 consolidated Free Cash Flow of at least 90% of 2006.
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