So far, the seemingly recession-resistant cable (and phone) industries are living up to their reputations. The latest evidence: top cable operator Comcast issued its Q1 08 earnings results this morning showing continued healthy grow in new, high-margin add-on services even if it continues to lose basic cable subscribers. (Download our spreadsheet detailing Comcast's financial and operational data.)
Comcast lost about 57,000 basic video customers during the quarter, which, when compared to the 100,000 or subscribers lost during Q4 07 is an improvement in churn. At quarter's end Comccast served 24.7 million basic subscribers, representing around 49.5% of all homes passed.
Like most cable and phone companies, Comcast is experiencing growth slow-down in its new services after years of heated expansion. Against this backdrop, though, the operator posted decent gains on all fronts.
Digital service gained a net 494,000 new customers to reach 16 million subscriber or about 65% of basic subs. Comcast added almost an equal number of high-speed subs. (492,000) to reach a total of 14.1 million broadband customers representing 28.4% of capable homes by the end of Q1 08.
Telephony growth was even stronger -- during the quarter, Comcast added a net 529,000 net new voice customers, a run-rate up 8% sequentially and 7% year-over-year. Voice growth would have been even higher if Comcast hadn't intentionally lost around 110,000 of its legacy circuit-switched customers. Comcast actually added 639,000 net new digital voice subscribers during the quarter. Netting out the gains and losses, Comcast served 5.1 million total telephony customers by the end of Q1 08, representing 11.5% penetration of capable homes.
It's no surprise, then, that the company rose 10% year-over-year and 5% sequentially to $7.92 billion. Cash flow likewise grew by 9.2% year-over-year.
Cynthia Brumfield at 12:20 PM|Comments(0)
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