Comcast Continues to Attract New Triple Play Customers



Comcast’s cable customer relationships

Over the years, Comcast Cable Communications has been an important contributor to Comcast’s total revenues. Comcast Cable (CMCSA) generated 63% of Comcast’s total revenue and 77% of the company’s total OIBDA (operating income before depreciation and amortization) in the first nine months of 2015. Comcast Cable had 27.4 million cable customers, 22.3 million video customers, 22.9 million high-speed Internet customers, and 11.3 million voice customers in 3Q15.

Comcast Cable has been trying to attract new customers to its triple play services. It retains existing customers by offering new products using enhanced technology such as the new X1 Platform, Cloud DVR, and wireless gateways.

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Comcast’s Cable Communications customer relationships showed a substantial 90.2% improvement over 3Q14. The Cable Communications business had 27.4 million customers, with the majority of customer relationships being double product customer relationships. Double product customers are those customers that use two services from the Cable Communications business.

As the above chart indicates, the video business was the largest contributor to the company’s Cable Communications business, with a revenue share of 45.6%.

Business services segment

Excluding the residential triple play services (video, high-speed Internet, and voice) Comcast’s business services segment has been the second-largest contributor to the growth of the Cable Communications business for 18 of the last 19 quarters for Comcast, indicating the growing importance of this business for the company. This segment had revenues of $1.2 billion in 3Q15, an increase of 19.5% over the corresponding quarter last year.

Comcast makes up 2.6% of the PowerShares QQQ Trust Series 1 ETF (QQQ). For investors interested in getting an exposure to television and radio, QQQ has 4.4% exposure to the sector. QQQ also holds 4.8% of Alphabet (GOOG), 5.9% of Amazon (AMZN), and 8.4% of Microsoft (MSFT).


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