Solid revenue gains boost Comcast profits

PHILADELPHIA — Comcast Corp., the nation's largest cable operator, reported a 54 percent increase in fourth-quarter profit on solid revenue gains that were boosted by acquisitions and customers' increased spending for cable TV.

In a bow to the desires of agitated shareholders unhappy with its weakened stock price, Comcast also said it will start paying a 6.25-cent quarterly dividend starting at the end of April that it expects will increase over time.

Moreover, the Philadelphia-based company is pledging that by the end of 2009 it will spend the remaining $6.9 billion it has allotted to buy back shares to try to satisfy a growing chorus on Wall Street to step up its repurchases.

In a conference call with analysts, chief executive Brian Roberts allayed any concerns that Comcast would mount another expensive acquisition, such as its past bid for Walt Disney Co.

In the fourth quarter, Comcast reported a net income of $602 million, or 20 cents per share, compared with $390 million, or 13 cents, in the same period a year ago. Excluding one-time gains, earnings per share would have risen by 33 percent to 20 cents per share in the 2006 period.

For the year, Comcast posted a 2 percent increase in profit to $2.59 billion, or 83 cents per share, as revenue rose by 24 percent to $30.9 billion.