As we suspected following weak customer growth figures posted by the phone companies, Comcast CMCSA turned in a solid performance during the third quarter. The cable firm added nearly as many high-speed Internet access customers as a year ago, indicating it is taking share in this business, and it trimmed television customer losses year over year. Phone customer growth also picked up relative to recent quarters. Though revenue growth continues to slow, margins have held steady, and lower capital spending again produced a big jump in free cash flow. A big chunk of the cash that had built on Comcast's balance sheet at the end of the second quarter was used to repay $3.6 billion of maturing debt. The firm also repurchased a modest number of shares, but management remains more conservative than in years past with respect to its use of cash flow. The firm's debt load, net of cash on hand, dropped nearly $500 million during the quarter. The firm made no mention of the proverbial elephant in the room in its earnings release--the rumored deal to acquire a stake in NBC Universal.

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