People can’t afford to go out, so they are getting their entertainment at home. At least the is the message embedded in the Comcast (CMCSA) third quarter earnings. The firm even upped its forecasts for future quarters.
Revenue was up 10% to $8.5 billion. Operating income was up 20% to $1.67 billion.
Comcast added 417,000 digital cable customers in the third quarter of 2008, compared to 503,000 in the same period one year ago. Year to date through September 30, 2008, Comcast added 1.2 million digital cable customers
The phone companies should be worried. Comcast added 382,000 high-speed Internet subscribers during the third quarter. Its penetration reached 30% of homes passed or 14.7 million customers.
Even worse for the telcos, the company added 483,000 VoIP customers during the third quarter and penetration reached 13% of homes passed or 6.1 million customers. Not a good day for Verizon (VZ) or AT&T (T)
Pay-per-view revenue was up 9% People sitting on couches with no money to leave home.
Douglas A. McIntyre