Comcast adds 42K pay-TV subscribers in first quarter, cable revenue up 5.8%

Reporting another companywide strong quarter, Comcast added 42,000 pay-TV users in the first quarter, beating the 32,000 added in the same period last year and matching analyst expectations. 

Comcast said that cable communications revenue increased 5.8% to $12.9 billion in the period, with video revenue group up 4.3% to $5.8 billion. 

High speed internet users increased by 429,000, with HSI revenue increasing 10.1% to $3.6 billion. 

Overall, revenue per cable customer increased by 2.6% for Comcast in the first quarter. Voice revenue was down, meanwhile, by 3.6% to $1.5 billion. Notably, Comcast said its Xfinity Home automation business now has 1 million subscribers. 

“Cable margins exceeded expectations, rising year over year, with cost discipline complementing lower programming expense,” noted Jefferies analyst Mike McCormack in a note to investors this morning. “Video and HSI met expectations and remain healthy.”

Comcast continues to ascribe its ascendant video metrics to deployment of the X1 video platform, which it says is now in 52% of its footprint, up from 35% in the first quarter of 2016. Comcast expects to have X1 deployed in the low 60% range by the end of the year, the company said. 

Comcast said it is in the process of deploying a new home Wi-Fi product called “X-Fi,” which it hopes will provide an experience in home internet usage similar to X1.

“Just as we did with X1, we want to create a much better experience with the internet. With X-Fi, you’ll have great speed, great coverage and it lets you define the customer experience throughout the household,” said Dave Watson, newly appointed CEO of Comcast Cable.