Comcast’s high-speed Internet customers
Comcast (CMCSA) witnessed strong growth in the cable communications business segment in Q3 2018. Cable revenues were up 3.4% in the third quarter driven by consistent net additions of high-speed Internet customers. In the third quarter, revenue from high-speed Internet grew 9.6% to $4.3 billion in the quarter, driven by net additions of total high-speed Internet customers by 363,000, which consisted of net additions of 334,000 residential high-speed Internet customers and additions of 29,000 business services high-speed Internet customers.
Focus on high-speed Internet customers
Comcast has been delivering robust growth in its high-speed Internet business amid the cord-cutting trend that is hurting the cable business. The company added 363,000 high-speed Internet customers, the highest in the last ten years versus 214,000 a year earlier.
The company has been taking initiatives to enhance control and coverage and improve speed for the growing broadband penetration in homes. The company has introduced the holistic broadband product as xFi and has rolled out xFi gateways to its broadband customers. Further, Comcast’s deployment of gigabit speeds was the fastest to most of the locations, and one-GB Internet had reached nearly 58 million homes and businesses by the end of the third quarter.
Other Internet providers
As subscribers shift away from pay-TV bundles and opt for cheaper streaming services from Netflix (NFLX) and Amazon’s (AMZN) Prime video, pay-TV companies including Charter (CHTR) and Comcast are focusing on their high-speed Internet business to survive in the rapidly changing media landscape.
Both Comcast and Charter managed to post better-than-expected broadband subscriber additions in Q3 2018. Charter added 266,000 residential Internet customers in the third quarter in comparison to Wall Street’s expectations of 234,000 customer additions. In the third quarter, Verizon (VZ) also added 54,000 FiOS Internet customers driven by strong demand for high-quality Internet connection.