Earnings: HSD, Digital Drive Comcast’s Dramatic Growth


Comcast reported net income of $313 million for 1Q05 — up five times over the $65 million earned in 1Q04. The country’s largest MSO — and one of its largest ISPs — added 414,000 HSD subs to finish the first quarter of 2005 with 7.4 million subscribers; the average revenue per sub was $42.81, up slightly from the previous year and previous quarter.
More highlights:
— HSD revenue jumped to $925 million, up 32.5 percent.
— By March 31, Comcast had distributed 1.6 million set-tops enabled for DVR and/or HDTV — up more than one million in the past year. Roughly 25 percent — 428,000 — were distributed in the first quarter, bringing in an additional $5-10 monthly revenue per box.
— Ad revenue was up nearly 10 percent to $296 million; look for continued efforts to push cable and broadband advertising revenues up.
— Comcast lost 29,000 basic video subs but gained a surprising 200,000 new digital subs. Digital is by far more valuable; Comcast passed 41 percent digital penetration in the first quarter. Earnings release. (pdf)

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