Comcast added 382,000 broadband subscribers during the third quarter, more than what AT&T, Verizon and Qwest combined. The three, who are the only remaining incumbent Bellcos, together added 338,000. Comcast added 483,000 new telephone subscribers while the three Bellcos lost 2.2 million.
Comcast, the US’ largest cable TV operator, reported a 10% quarterly revenue increase (7% excluding acquisitions) and an increase in third-quarter earnings due in part to a 14% decline in capital spending and increased pay-TV rates.
The company added subscribers in digital pay-TV, broadband and telephony but the rate of increase declined from recent quarters.
The company said two-thirds of its new broadband subscribers switched from a telco. By comparison AT&T added 148,000 in the quarter and Verizon added 129,000 If Comcast and AT&T have the same increase in Q4 as they had in Q3, Comcast will become the US’ largest broadband service.
Comcast ended the quarter with 14.7 million broadband customers, second only to AT&T, which has 14.8 million. Verizon has 8.5 million.
Time Warner Cable, Cablevision, Charter and Bright House will post their third quarter results as we go to press. Privately owned Cox no longer makes its broadband numbers public. Comcast’s quarterly revenue from broadband increased 9.4% to $1.82 billion, an annualized rate in excess of $7 billion.
Comcast’s average broadband subscriber paid $41.74 a month in the quarter, down 2.2% from the year ago quarter.
Comcast lost 147,000 basic pay-TV subscribers in the quarter but added 417,000 new digital TV customers. It said 15,000 of the losses were due to hurricanes Ike and Gustav.
Pay-TV revenue increased 3.6% to $4.7 billion, mainly because of higher monthly rates and the increase in pricier digital TV subscribers. The average pay-TV subscriber paid Comcast $63.74 per month, up 5.3%. The company attributed the increase to due to higher monthly rates and pay-per-view purchases.
Comcast continued to take residential phone subscribers away from the Telcos. It added 483,000 digital phone customers, 29% fewer than the same quarter a year ago. The average digital phone subscriber paid $38.98, down almost 5%. Overall, phone revenue rose 44% to $690 million.
Comcast maintained its forecast for 2008 – an 8% to 10% increase in revenue and operating cash flow. Capital spending will stay at 18% of revenue.
Comcast CEO Brian Roberts said the company is financially and mentally ready for any economic downturn. “It goes back to my father’s life being truly changed by the Depression. He trained me always to be ready,” Roberts said. “We do not need to access the capital markets any time for the foreseeable future. We have significant free cash flow and liquidity. That, I believe is a very enviable position.”