U.S. cable operators see weaker second quarter

By Yinka Adegoke

NEW YORK (Reuters) - The two largest U.S. cable operators expect slower customer growth in the current quarter across all their products when compared with the first quarter.

Comcast Corp and Time Warner Cable Inc said subscriber growth is slowing in the second quarter and cautioned that the U.S. economy is still not out of woods.

Comcast CEO Brian Roberts said at an investor conference on Friday his company has seen a subscriber slowdown across its TV, Internet and phone services partly due to the slower housing market and widespread job losses.

"I would conclude there's a lag effect," said Roberts at Bernstein Strategies Decision conference in New York. "There are less opportunities to sell new things right now."

Roberts said U.S. consumers appeared to be resetting their expectations.

The U.S. cable TV industry has been hurt by a combination of a weak economy and competition from satellite TV and phone companies.

Time Warner Cable CEO Glenn Britt told investors that the rate at which it is adding subscribers in the current period is more similar to the weak growth it saw in the December quarter, when its additions dropped off significantly.

Though Time Warner Cable's growth recovered last quarter, outperforming analyst expectations, helped by publicity over a U.S. government mandated digital switch-over which was originally set for February 17. But last month it warned that it had started to see slower customer additions again. Britt said this was still continuing.