Comcast Reports Third Quarter 2007 Results

Strong Growth Continues

PHILADELPHIA — Comcast Corporation (Nasdaq: CMCSA, CMCSK) today reported results for the quarter ended September 30, 2007.

Cable Segment Results

Revenue increased 11% to $7.4 billion for the third quarter of 2007 as compared to $6.7 billion in the third quarter of 2006. The growth in revenue reflects continued consumer demand for Comcast’s services and the success of the Comcast Triple Play. Cable revenue increased 12% to $21.9 billion for the nine months ended September 30, 2007 as compared to $19.6 billion in the prior year.

Revenue generating units (RGUs) increased 1.4 million in the third quarter of 2007, a decrease from the 1.5 million additions reported in the third quarter of 2006. The Company ended the third quarter of 2007 with 55.8 million RGUs, a 13% increase from the 49.4 million reported one year ago. Year to date through September 30, 2007, Comcast added 4.8 million RGUs, a 40% increase in the number of additions from the same period last year.

Operating Cash Flow grew 13% to $3.0 billion in the third quarter of 2007 from $2.6 billion in the third quarter of 2006. Operating Cash Flow margin reached 40.2%, an increase from the 39.6% reported in the third quarter of 2006. The margin improvement reflects strong double- digit revenue growth and our continuing success in controlling the rate of growth of operating costs even as we experience an extraordinary level of activity from the growth in RGUs.

Year to date through September 30, 2007, Operating Cash Flow increased 13% to $8.9 billion from the $7.8 billion reported in the same period last year. Operating Cash Flow margin increased to 40.5% for the nine months ended September 30, 2007 from 39.9% in the prior year period.

Video

• Added 489,000 new digital cable subscribers during the third quarter of 2007 – reached 14.7 million digital customers or 61% of basic cable subscribers compared to 50% one year ago
• 5.8 million or 40% of our digital cable subscribers take advanced services such as digital video recorders (DVR) and high-definition television (HDTV) compared to 4.0 million or 33% one year ago

Video revenue increased 6% to $4.4 billion in the third quarter of 2007 from $4.2 billion in 2006, reflecting growth in digital cable customers and increased demand for digital features including ON DEMAND, DVR and HDTV, as well as higher basic cable pricing.

Over the last twelve months, the number of basic cable subscribers remained relatively unchanged. As of September 30, 2007, Comcast reported nearly 24.2 million basic cable subscribers as compared to more than 24.1 million in September 2006, an increase of 24,000 basic cable subscribers over the past year. During the third quarter of 2007, basic cable subscribers decreased by 65,000 as compared to an 11,000 subscriber increase during the same period of the prior year. Year to date through the nine months ended September 30, 2007, basic subscribers decreased 86,000 compared to a decrease of 29,000 in the same period last year.

Comcast added 489,000 digital cable customers during the third quarter of 2007 compared to 559,000 digital cable customers added in the same quarter of 2006. Year to date through September 30, 2007, Comcast added nearly 2.0 million digital cable subscribers, an increase of 56% from the 1.3 million added during the same period one year ago reflecting Comcast’s success with accelerating digital set-top box deployments ahead of a July 1, 2007 regulatory deadline.

The digital cable customer additions in the third quarter of 2007 include 113,000 full digital cable and 376,000 digital starter subscribers. During the quarter, 325,000 digital cable customers added advanced services, like DVR and HDTV, to their digital service either by upgrading or as new customers. As of September 30, 2007, 40% of our digital cable customers receive advanced services, 38% receive full digital cable, and 22% are digital starter subscribers.

High-Speed Internet

• Added 450,000 high-speed Internet subscribers during the third quarter – penetration reaches 27%

High-speed Internet revenue increased 17% to $1.6 billion in the third quarter of 2007 from $1.4 billion in 2006. The strong growth reflects a 1.8 million or 17% increase in subscribers from the prior year and stable average monthly revenue per subscriber of approximately $43. Year to date through September 30, 2007, Comcast added more than 1.3 million high-speed Internet subscribers compared to the nearly 1.4 million added in the same period last year. Comcast ended the third quarter of 2007 with 12.9 million high-speed Internet subscribers.

Phone

• Added 662,000 Comcast Digital Voice (CDV) customers during the quarter – penetration now exceeds 9%
• CDV service now marketed to 40 million homes representing 83% of Comcast’s footprint

Phone revenue increased 86% to $472 million in the third quarter of 2007 from $253 million in 2006. The strong growth reflects a nearly three fold or $276 million increase in CDV revenue from the prior year as a result of the significant growth in CDV subscribers. The increase in phone revenue was partially offset by a $57 million or 53% decline in circuit-switched phone revenue as Comcast transitions to marketing only CDV in most areas.

Year to date through September 30, 2007, phone revenue increased 91% to $1.2 billion from $652 million in 2006, reflecting a 1.9 million increase in CDV customers, and partially offset by a $164 million decline in circuit- switched phone revenue.

Advertising revenue increased 7% to $407 million in the third quarter of 2007 from $382 million in 2006, due primarily to the impact of an additional broadcast week in the current quarter compared to the same period in 2006, offset by a decline in political advertising. Year to date through September 30, 2007 advertising revenue increased 1% to $1.1 billion reflecting continued weakness across the television advertising market and a decline in political advertising. Comcast reported political advertising revenue of more than $90 million in the 2006 election year.

Capital expenditures increased 19% to $1.5 billion in the third quarter of 2007 compared to $1.3 billion in the same period a year ago. Year-to-date cable capital expenditures increased 39% to $4.5 billion from $3.3 billion in the same period a year ago, reflecting a 40% or 1.4 million increase in RGU additions and a 20% increase in the number of digital customers added with advanced digital services (HD and/or DVR service).