Comcast Corporation (
Q3 2010 Earnings Call
October 27, 2010 8:30 a.m. ET
Marlene Dooner - SVP, IR
Brian Roberts - CEO
Michael Angelakis - CFO
Neil Smit - President
Steve Burke - COO
John Hodulik - UBS
Doug Mitchelson - Deutsche Bank
Craig Moffett - Sanford C. Bernstein
Jessica Reif-Cohen - Bank of America Merrill Lynch
Jason Bazinet - Citi
Jason Armstrong - Goldman Sachs
Stefan Anninger - Credit Suisse
Spencer Wang - Credit Suisse
Ben Swinburne - Morgan Stanley
Vijay Jayant - Citadel Securities
Marci Ryvicker - Wells Fargo
Richard Greenfield - BTIG
Bryan Kraft - Evercore Partners
Previous Statements by CMCSA
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Good morning ladies and gentlemen and welcome to Comcast Third Quarter 2010 Earnings Conference Call. At this time all participants are in a listen only mode. Please note that this conference call is being recorded. I will now turn the call Senior Vice President, Investors Relations Ms. Marlene Dooner. Please go ahead Ms. Dooner.
Thank you operator and welcome everyone to our third quarter 2010 earnings call. Joining me on the call are Brian Roberts, Michael Angelakis, Steve Burk and Neil Smit. As always let me first refer you to slide number two which contains our Safe Harbor disclaimer and remind you that this conference call may include forward-looking statements subject to certain risks and uncertainties.
In addition, in this call we will refer to certain non-GAAP financial measures. Please refer to our 8-K for the reconciliation of non-GAAP financial measures to GAAP. With that let me turn the call to Brian Roberts for his comments, Brian?
Thanks Marlene and good morning everyone. Please join me on slide three; today we are pleased to report strong financial results. This marks the third consecutive quarter of accelerating growth in revenue which increased 7% operating cash flow which increased 8%.
We generated free cash flow of $1 billion this quarter and almost $4.3 billion year-to-date an increase of 17% compared to the first nine months of last year. These results reflect our continued focus on profitable growth a very resilient residential business, a robust advertising market and a continued focus and strength on business services.
We obviously still have a tough economy which combined with the anniversary of the broadcast digital transition continued to impact video units. However, as Michael will discuss in a few minutes. We started to see some real year-over-year improvement toward the end of the third quarter and for October.
Overall, we are executing well delivering strong financial results as we focus on high value video customers on growing our relationships and broadband and phone and expanding business services.
We are also continuing to invest a foster growth and to further strengthen our competitive position with all digital now about 65% of our markets and DOCSIS 3.0 deployed in more than 80% of our footprint. As we near completion of these important projects we are starting to see the fruits of those investments.
In video, we have tripled the number of high def channels and have doubled the amount of foreign language programming. In HSD we are reinforcing our product superiority as we double the speeds to our existing customers and introduce new higher speed services with 50 megabits currently available to more than 40 million homes and a 105 megabits to more than 25 million homes.
Our On-Demand service is also expanding. With our new library server infrastructure which takes advantage of our scale, we called the Comcast content delivering network or CCDN. We now have the capacity to offer $70,000 of content. As a result, Comcast customers in more than 20% of our footprint now have access to over 25,000 On Demand choices including 11,000 movies.
By the end of this year a majority of our markets will have this level of choice and with CCDN we have the ability to continue to expand the On Demand choices we offer our customers. As we do this, we are rolling out enhanced guides with better linier and On Demand search, improved DVR functionality and more interactivity include a unique new feature that automatically informs you if the content is available in high definition and just with the click of one extra button immediately takes you to the HD version which our customers really love.
Our new guide has already been rolled out to three quarters of our markets and will be in all our markets in the next six months. We are also deploying remove DVR and multi room DVR and they are available in a majority of our markets today.
Please turn to slide four. This week we re launched Xfinity TV, our authenticated On Demand online service with a new and I think great marketing campaign. Xfinity TV gives customers online access to 150,000 entertainment choices including movies, TV shows, premium and HD content with a compelling search and discovery platform.
All of our digital video customers will receive a customer ID to access Xfinity TV for no extra cost. It's a tremendous value added service. And before the end of this year we will launching the Xfinity
TV remote app which will work on all the iPhones and iPads and eventually, right after they come out on the Android based tablets.
This is an entirely new form factor and device for consumers of these tablets which I think makes the search and discovery and the enjoyment of television that much greater because we've all been looking for how to navigate these 150,000 choices or whatever the consumer actually has. And this, with the touch of a finger allows you to change channels as well as do search and discovery. I think you'll like it when you get one.