Zacks.com Features the Following Top Stocks in the Cable and Entertainment Industry: Comcast, Cox Communications, The Walt Disney Company and TiVo

Business Wire, Sept 27, 2004

CHICAGO -- With diverse broadband services connected to more homes than ever before, it's no wonder the cable and entertainment industry is taking off like a rocket. Here are some of the top recommendations in the cable and entertainment industry: Comcast Corporation (NASDAQ:CMCSA), Cox Communications (NYSE:COX), The Walt Disney Company (NYSE:DIS) and TiVo (NASDAQ:TIVO). Discover the full story at Zacks.com http://at.zacks.com/?id=96

What Do The All Stars Recommend:

Comcast Corporation (NASDAQ:CMCSA) is among the world's leading communication companies, provides basic cable, digital cable and high speed internet services that connect people to what's important in their lives. Brian L. Roberts, Chairman and CEO of Comcast Corporation said, "We are again reporting outstanding results. Our cable division generated double-digit revenue growth of over 10% and Operating Cash Flow growth of 20% this quarter. As a result, we expect to report approximately $7.5 billion of Operating Cash Flow in 2004, a growth rate of 18%. Cable's strong second quarter results and improved outlook for the remainder of the year reflect robust growth in new video and high-speed Internet services as we deliver compelling video services like Comcast ON DEMAND and HDTV and as we continue to expand the features offered to our high-speed Internet customers. We are also generating significant operating improvements and scale efficiencies that are driving Operating Cash Flow growth and improving operating margins." With the upgrade of their networks now essentially complete, Comcast generated $500 million of Free Cash Flow this quarter and is on track to reach their goal of $2 billion of Free Cash Flow this year.

Cox Communications (NYSE:COX) is a multi-service broadband communications company. Cox is the nation's fourth-largest cable television provider, and offers both traditional analog video programming under the Cox Cable brand as well as advanced digital video programming under the Cox Digital Cable brand. In July, Cox announced total revenues for the second quarter of 2004 were $1.6 billion, an increase of 12% over the second quarter of 2003. This was primarily due to growth in advanced-service subscriptions (which include digital cable, high-speed Internet access and telephony) and higher basic cable rates. An increase in Cox Business Services customers, as well as an increase in advertising sales, also contributed to overall revenue growth. "During the second quarter, sell-in of our bundled offering of video, telephone and high-speed Internet service hit a record high of 21% in our telephone markets. Customers further validated their satisfaction with Cox digital telephone this quarter when Cox received top honors in two J.D. Power and Associates telephone satisfaction surveys.", according to Jim Robbins, Cox Communications' President and CEO. Cox's continued commitment to customer growth and improving profitability resulted in strong revenue growth of 12%, operating income growth of 27%, operating cash flow growth of 16% and the company's 6th consecutive quarter of year-over-year operating cash flow margin improvement.

The Walt Disney Company (NYSE:DIS) is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Studio Entertainment, Theme Parks and Resorts, Consumer Products and Internet and Direct Marketing. Investors have been very interested in the decision by Michael Eisner to leave as CEO. Although there were many that disagreed with the direction of the company, Disney is a true pioneer in the entertainment industry. They have also managed double-digit earnings surprises each of the last three quarters. In July, the company reported that diluted earnings per share for the fiscal third quarter were 29 cents, up 21% from 24 cents in the prior-year third quarter. During the quarter, the company recorded restructuring and impairment charges totaling $56 million or 2 cents per share in connection with the proposed sale of the Disney Stores in North America and the closure of certain other stores. For the nine month period, diluted earnings per share were 88 cents, a 43 cent increase from the prior-year period earnings per share of 45 cents before the cumulative effect of an accounting change. "The continued growth in our earnings this quarter, led by ESPN and our other cable networks, positions us well to deliver more than 50% growth in earnings for the year, as we predicted last quarter," said Disney CEO Michael Eisner. "Equally important, our strong earnings and cash flow growth demonstrate the overall strength of our businesses. During the recent downturn, we have remained focused on managing the company for long term performance and extending the Disney legacy and we believe that the positive trends in our businesses validate that approach." That legacy seems well in tact and should flourish again as market conditions improve.

TiVo (NASDAQ:TIVO) is the creator of and a leader in television services for digital video recorders (DVRs). The company recently reported that it added approximately 288,000 total subscriptions in the second quarter, more than triple the number it added in second quarter of last year. In the past twelve months, the company's total installed base has more than doubled to approximately 1.9 million. Service revenues for the quarter increased 77% to $24.3 million, compared with $13.8 million for the three months ended July 31, 2003. Net loss for the quarter was ($10.8) million, or (13 cents) per share, compared to a net loss of ($4.4) million, or (7 cents) per share, for the three months ended July 31, 2003. The increase in net loss and net loss per share for the quarter reflects the company's previously announced investment in subscription acquisition activities to accelerate sub growth during fiscal year 2005. "Everything we've done in the first half of the year is setting us up for the significant growth we expect in both our TiVo-Owned and DIRECTV with TiVo subscriptions in the second half," commented Mike Ramsay, chairman and CEO of TiVo. "We're committed to growing our standalone business, and the investments we've made in low cost products and expanded distribution, coupled with the new $99 price point are keys to our growth in the second half of the year and beyond." Earlier in the month, TiVo announced a series of coordinated initiatives to support its growth strategy. These initiatives include a new $99 TiVo box (after rebate) and an expansion of the TiVo retail footprint to approximately 4,000 stores. TiVo expects the elements of this growth initiative to fuel one of the most substantial subscription growth periods in its history.