Comcast lost 125,000 video customers in the third quarter, but offset those losses with broadband, business and home security and automation additions to add a net 115,000 accounts.
In the third quarter, Comcast delivered earnings of $2.65 billion, or 55 cents a share, on revenue of $29.98 billion, down 1.6 percent from a year ago. Earnings topped estimates of 49 cents a share, but revenue fell short of the $21.06 billion analysts expected.
The technology and media company's cable business highlights multiple shifts. Over-the-top video services mean lost customers, but businesses are adding Comcast for connectivity. Smart homes are driving growth in automation and security. And Comcast's broadband services are being bolstered with the lunches of xFi--a home networking platform.
CEO Brian Roberts said the company is focused on "profitable whole home economics." What's that mean? Comcast is focused on customer relationships and ultimately may not sweat if you don't get video. Roberts also added that Comcast has 250,000 wireless customers since launching a service in May.
We see lots of opportunities in our data connectivity businesses, residential broadband and business services, which combined, generate over $20 billion in revenue per year, growing right at around 10% and are accretive to our margins. And these areas are increasingly where we are directing our capital.
In addition, Roberts said customer service is improving due to all-digital interactions provided by analytics and agile development. Customer calls handled by Comcast agents fell by 4 million in the third quarter, he said.
Like previous quarters, Comcast Business is the fastest growing unit with third quarter revenue up 12.6 percent from a year ago to $1.57 billion. High-speed Internet revenue was up 8.9 percent and video up 4.2 percent.
Here's a look at the moving customer parts: