"PHILADEPHIA - Cable operators are riding high heading into this year's industry trade show, which kicks off this weekend.
After a dismal 2007 in which their shares took a big pounding, cable is seeing a rebound as Wall Street put more weight on their gains in high-speed Internet and digital voice rather than focusing mainly on their traditional video services.
Year-to-date, industry leader Comcast Corp.'s shares are up 21 percent after falling 57 percent in 2007. The stock rose 8.6 percent the day that the Philadelphia-based company posted a 23 percent increase in first-quarter operating profit despite losing 57,000 basic video subscribers; its new Internet, phone and digital video subscribers has made up the difference, and more.
Time Warner Cable Inc. shares are up 10 percent so far this year, recovering from a 33 percent freefall last year, while Cablevision Systems Corp.'s stock rose 2 percent after declining 14 percent in 2007.
For the most part, the slowing economy didn't seem to take much of a bite. Cable companies added more double- and triple-play customers -- people who bought two or three bundled services at lower rates than they would have paid a la carte.
"In the face of an uncertain economy, we're growing," said Kyle McSlarrow, chief executive of the National Cable and Telecommunications Association, host of the 2008 Cable Show in New Orleans."
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