Comcast reported Q2 revenue of $8.6 billion, an increase of 11% of the same period last year. Operating Income increased 19% to $1.8 billion. This growth was due to solid operating results at Comcast Cable and in the Programming segment, as well as the positive impact of cable acquisitions.
“We delivered solid results in the second quarter of 2008, highlighting the strength of our businesses even in a challenging economic environment. We continue to manage the business for profitable growth, resulting in healthy revenue, operating cash flow, earning per share, and free cash flow generation,” stated Brian L. Roberts, Chairman and CEO of Comcast.
Some highlights for the quarter:
- Basic video subscribers declined 138,000 or 0.6% during the second quarter.
- Added 320,000 digital cable subscribers during the second quarter – 67% or 16.3 million video subscribers have digital service.
- 7.0 million or 43% of digital cable subscribers have advanced services such as digital video recorders (DVR) and/or high-definition television service (HDTV).
- Video revenue increased 3% to $4.7 billion in the second quarter of 2008 from $4.6 billion in 2007. The revenue increase reflects price increases for video services and growth in digital video customers, offset in part by an increasing number of customers in bundles and promotional offers, as well as a decline in basic video customers.
- Basic cable subscribers decreased by 138,000 to 24.6 million during the seasonally-weak second quarter. This compares to a 101,000 subscriber decline in the second quarter of 2007. Year to date through June 30, 2008, basic subscribers decreased 195,000.
- Comcast added 320,000 digital cable customers in the second quarter of 2008, below the 823,000 digital cable customers added in the same period one year ago. This deceleration was anticipated and reflects the significant deployment of digital boxes in the second quarter of 2007 in advance of a July 1st regulatory deadline. Year to date through June 30, 2008, Comcast added 814,000 digital cable customers. PPV revenue decreased 3% in the second quarter of 2008 primarily reflecting the absence of 2 major live events that contributed approximately $33 million to last year’s second quarter. In the six months ended June 30, 2008, PPV revenue grew 9% compared to the same period in 2007.
- Added 278,000 high-speed Internet subscribers during the second quarter — penetration reached 29% of homes passed or 14.4 million customers.
- High-speed Internet revenue increased 10% to $1.8 billion in the second quarter of 2008 from $1.6 billion in 2007 reflecting a 12% increase in subscribers and a 3% decline in average monthly revenue per subscriber to $42.01, reflecting the impact of additional bundling and the recent introduction of new offers and speed tiers.
- Added 555,000 Comcast Digital Voice (CDV) customers during the second quarter — penetration reached 12.5% of homes passed or 5.6 million customers.
- Phone revenue increased 50% from $425 million to $640 million in the second quarter of 2008, reflecting significant growth in CDV subscribers and a decrease in average revenue per subscriber to $39.48, resulting from an increase in the number of customers receiving service as part of a promotional offer or in a new product package. The increase in CDV revenue was also partially offset by a $64 million or 96% decline in circuit-switched phone revenue as Comcast exits that product offering.
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