& cplSiteName &

Comcast Makes Middle Market Gains

Alan Breznick
1/29/2014
50%
50%

With its recent rollout of Ethernet, hosted VoIP, and other products for midsized firms, Comcast is expanding its share of the commercial middle market while continuing to boost business services revenues to record levels. (See Comcast Plots National SIP Trunking in 2014.)

In their year-end earnings report and corresponding conference call Tuesday, Comcast Corp. (Nasdaq: CMCSA, CMCSK) officials cited progress in going upmarket by expanding beyond their base of small firms with fewer than 20 employees. They said "midsized enterprises" now account for 20% of the business services division's revenues, which translates to about $640 million.

Comcast executives also said they have now carved out a 10% to 15% market share in the small business market, which still accounts for the lion's share of their commercial revenues, or more than $2.5 billion. While that represents an increase from their previous market share estimates, they said they still have plenty of room to grow in that space. "We think there's still substantial opportunity there," said Comcast Vice Chairman and CFO Michael Angelakis, speaking on the earnings call.

The new market share estimates came as Comcast reported another record-breaking quarter for the commercial division. The company generated $876 million in business services revenues for the fall quarter, up an impressive 25.3% from $699 million in the year-ago period.

As expected, Comcast easily scaled the $3 billion revenue mark in commercial revenues for the year, becoming the first cable operator to do so just a year after it became the first to clear the $2 billion bar. The MSO racked up more than $3.2 billion in 2013, up 26.4% from nearly $2.6 billion in 2012. (See Heavy Reading: Cable Biz Sales to Hit $8.5B.)

With the latest gains, the commercial division is now the company's fourth-biggest revenue producer, having passed advertising a year or so ago. And it's now on course to overtake voice services for third place in another year.

Furthermore, Comcast executives said the commercial services unit was the second-largest contributor to revenue growth in both the fourth quarter and the entire year. Only broadband services, the company's second-largest revenue source, made a bigger contribution in those two periods.

With business services revenue showing no signs of slowing down, even after five years of 25% or more annual growth, Comcast officials said they see plenty of room for expansion, particularly with their current market share no higher than 15%. "We still see substantial opportunities for profitable growth," said Brian Roberts, chairman and CEO of Comcast Corp.

In a note to investors earlier this week, Craig Moffett, a principal in MoffettNathanson LLC, suggested that Comcast may be interested in buying Time Warner Cable Inc. (NYSE: TWC)'s large New York City, North Carolina, and New England cable clusters at least partly because of the potential for pursuing larger enterprises in those markets. Moffett wrote the note after press reports suggested that Comcast might buy those cable systems from Charter Communications Inc. if Charter succeeds in its quest to buy TWC. (See Comcast May Join Charter Team.)

But, questioned about that idea on the analysts' call, Comcast executives said they're not ready to take on the more demanding enterprise market, at least not yet. "We're focused on small and midsized companies for the time being," said Neil Smit, president and CEO of Comcast Cable.

— Alan Breznick, Cable/Video Practice Leader, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/31/2014 | 5:16:53 PM
Climbing upmarket
Well, it was only a matter of time before Comcast started moving beyond the very-small-business market. Now the question is whether they can enjoy the same kind of success inthe middle market. So far, so good, or so it seems. Have the telcos taken notice yet? 
Educational Resources
sponsor supplied content
Educational Resources Archive
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Shades of Ray
Why Analytics Is the Tech World's Digital Glue

3|27|17   |   02:20   |   (0) comments


It was obvious at the massive annual CeBIT enterprise tech trade show that the foundation for tech innovation right now is real-time analytics.
LRTV Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


Light Reading talked to George McGregor of Citrix about the NetScaler Mobile Gateway - an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Nokia & Facebook Push Undersea Fiber to 32 Tbit/s
Craig Matsumoto, Editor-in-Chief, Light Reading, 3/21/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.