Following up on yesterday’s announcement in regards to lower revenue targets and higher expenses, Comcast said today that it also expects to lose more basic video subscribers.
Comcast cited poor economic conditions and increased competition from Verizon and AT&T as the reasons for an expected drop in basic video subscribers this quarter and into next year.
Comcast’s stock shares dropped after its announcement yesterday that its revenue growth is expected to decrease by 11 percent, from the prior forecast of 12 percent. The company’s shares fell 8.4 percent, to $19, in early trading today on the NASDAQ, after dropping as much as 12 percent in pre-market trading. In the past year, Comcast’s shares have ranged from $18.83 to $30.18.
Comcast also said in the statement issued late Tuesday that its expenses will be $6 billion in 2007 – 5 percent more than previously planned. Investors closely watch that posting on the balance sheet since the cable sector can require massive infrastructure expenses to lay cable or manufacture set-top boxes.
On Monday, Comcast, along with Time Warner Cable, said it would not bid on the upcoming auction of 700 MHz wireless spectrum.
