& 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? 
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
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
Is IBM's Watson Overhyped & Soon to Be Outdone?
Sarah Thomas, Director, Women in Comms, 7/13/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Telcos Beware: Sidewalk Labs Is on the Move
Mari Silbey, Senior Editor, Cable/Video, 7/13/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
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.