CSBJ Daily

The Associated Press

PHILADELPHIA– Promotional offers and higher cable television spending fueled the first-quarter profits of Comcast Corp., which showed limited effects from an economic slowdown.

The nation’s largest cable operator posted a 12.5 percent decline in profits, but it was mainly because of one-time gains from the dissolution of cable partnerships. Excluding those gains, earnings rose by 9.5 percent.

Comcast also confirmed its financial outlook for 2008 despite economic headwinds.

Investors cheered the unexpected news, driving shares up 5.4 percent, or $1.11, to $21.66 in morning trading.

“Investors had started to question how resilient the Comcast business would be in the face of macroeconomic weakness,” said Craig Moffett, senior analyst at Sanford Bernstein. “I think the first-quarter results put most of those concerns to rest.”

Comcast was able to deliver because of its diversified business, Moffett said. As consumers pinch pennies, for example, they might pull back on pay-per-view purchases but sign up for digital phone service with unlimited domestic calls at a set price.

Philadelphia-based Comcast posted net income of $732 million, or 24 cents per share, compared with $837 million, or 26 cents per share, during the quarter a year ago.

Excluding one-time gains, Comcast said quarterly profits were $588 million, or 19 cents per share, compared with $537 million, or 17 cents, last year.

That matched the average expectation of analysts surveyed by Thomson Financial.