Comcast reports massive improvement in profits

Comcast reports massive improvement in profits

Comcast Corp. has come out with their latest quarterly revenue report and the company has said that its quarterly profit tripled.

However, their higher-than-expected spending plans for 2007 resulted in their shares taking a hit at the stock market.

The company has now forecast revenue growth of at least 11 percent in 2007. This is as per the market expectations.

Their estimate of $5.7 billion in capital expenditure was however much above the market expectation of $4.8 billion. Comcast said that this spending is necessary to accelerate the introduction of new products like high-definition video.

They are also aiming to boost its relatively new business of selling services to small and medium companies.

Comcast Chief Executive Brian Roberts said in a statement: “If that drives some additional capital spending I think that’s a great opportunity that we should embrace. I think that in the fullness of time people will see that this is going to power our business for years to come.”