Wednesday, October 25, 2006

Comcast Credits Triple Play for Growing Momentum

Citing increased demand for its Triple Play service bundle, Comcast reported that revenue increased 12% to $6.6 billion in the third quarter of 2006 (results are presented as if the acquisition of Susquehanna Communications and the Adelphia/Time Warner transactions were effective on January 1, 2005.)

Some operational highlights for Q3:

  • Revenue generating units (RGUs) increased 1.486 million in the third quarter of 2006 or 82% from prior year net additions.

  • Added 558,000 new digital subscribers during the quarter. Digital penetration now exceeds 50%.

  • Video revenue increased 9% to $4.2 billion in the third quarter of 2006, reflecting growth in digital customers and increased demand for new digital features including ON DEMAND, digital video recorders (DVR) and HDTV programming, as well as higher basic cable rates and subscribers.

  • Basic video subscribers increased by 10,000 subscribers to 24.1 million during the third quarter of 2006 compared to a decline of 44,000 subscribers in the third quarter of 2005.

  • Comcast ended the quarter with 12.1 million or 50% of video subscribers taking digital services, a 1.6 million or 16% increase from one year ago.

  • Growth in video revenue and digital cable subscribers also reflects increasing consumer demand for new digital features including ON DEMAND, driving a pay-per-view revenue increase of 31% in the third quarter of 2006 from the same time in 2005.

  • Added 536,000 high-speed Internet subscribers during the quarter - the most quarterly additions in two years. Comcast now has 11.0 million high-speed Internet subscribers or 24% penetration of available homes.

  • Added 483,000 Comcast Digital Voice (CDV) customers during the quarter, for a total base of 2.1 million phone customers. There was a loss of 102,000 circuit-switched customers. CDV service now marketed to 31 million homes or 65% of Comcast's footprint.

  • Capital expenditures of $1.25 billion in the third quarter of 2006 were 25% higher compared to the third quarter of 2005 driven by an 82% increase in RGU net additions over the same time period.

See also