Comcast (CMCSA) Q1 2012 Earnings Call May 02, 2012 8:30 am ET Executives Marlene S. Dooner - Senior Vice President of Investor Relations Brian L. Roberts - Chairman, Chief Executive Officer, President and Director of Comcast Holdings Corporation Michael J. Angelakis - Vice Chairman and Chief Financial Officer Neil Smit - Executive Vice President, Chief Executive Officer of Comcast Cable and President of Comcast Cable
Marlene S. DoonerThank you, operator, and welcome, everyone, to our first quarter earnings call. Joining me on the call are Brian Roberts, Michael Angelakis, Steve Burke and Neil Smit. As we have done in the past, Brian and Michael will make formal remarks, and Steve and Neil will also be available for Q&A. As always, let me refer you to Slide #2, 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? Brian L. Roberts Thanks, Marlene, and good morning, everyone. We're really pleased with our start in 2012. In the first quarter, we had strong revenue and cash flow growth and record quarterly free cash flow of $3 billion. Cable had another outstanding quarter with real momentum in High-Speed Internet and Business Services and continuing improvements in Video results. Let's start with High-Speed Internet, which had a particularly strong quarter and customer growth with 439,000 net additions, up 5% from our strongest quarter last year as we continue to significantly outpace the net additions of our competitors. The 37% growth in revenue in the quarter, Business Services has become a significant engine for growth, and we have a mid-market opportunity that is still largely ahead of us. We're also pleased with our improving Video results. And although we reported 37,000 Video sub losses, we believe we can continue to make steady progress with our focus on technical and product leadership, and transforming this service experience and on accelerating innovation. Just in late February, we launched Streampix, which expands our Video offering with thousands of library movie and TV series available to stream anywhere. It's early, and the content choices will expand greatly throughout the year. But we now have a couple of million customers who have access to Streampix.
Voice had a good quarter with 164,000 net adds, increasing penetration and improving performance as the quarter advanced. This year, we're launching a series of enhancements like readable voicemail and free text messaging, and launching Skype on XFINITY. All of these new features reinforce the value of our Voice product and highlight the growing number of ways in which consumers can communicate using our services.XFINITY Home is now available in 72% of our footprint, offering a compelling service that incorporates home security, home control and energy management, and expands our market opportunity beyond just security. It's clearly very early, and we're just getting started this year, but XFINITY Home adds another growth opportunity for Cable. We're getting ready to expand availability of our X1 cloud-based user interface to hundreds of thousands of homes this year. And just a couple of days ago, we expanded the reach of our cross-marketing partnership with Verizon Wireless to 6 new markets. As you can see, we are focused on continuously enhancing our products, improving the customer experience and driving innovation, and all of this is bringing our XFINITY brand to life and trying to position us as the premier service provider for our customers. So whether you are measuring financial performance or operational excellence, Cable really is doing quite well, and we believe we can maintain this momentum. We also had a good quarter and a nice beginning to the year at NBCUniversal with revenue growth across every segment led by the Super Bowl and 2 successful film releases, The Lorax and Safe House. The Cable Networks and Theme Parks continued to show reliable growth, and we're starting to make some progress in Broadcast. As we've said previously, there is and will be more business volatility and quarterly variability in the results of NBCUniversal than in the rest of the company.
Also in 2012, we have a more aggressive Film slate and special big events like the Super Bowl and the Olympics. But when you look through all of this, NBCUniversal businesses are performing well and we're very focused on continuing to execute to build the long-term value of its brands and franchises. We're investing in sports and original programming, and let me give you just a few examples of some of our early successes.Read the rest of this transcript for free on seekingalpha.com