Speaking at its 2007 Analyst and Investor Meeting in Philadelphia, Brian Roberts, Chairman and CEO of Comcast Corporation raised the financial guidance for the company, predicting strong long-term prospects, including continued double-digit revenue growth, operating margin expansion, and sustainable and growing free cash flow. The bullish statements reflected the positive market response for the company's Triple Play service bundle.
"The triple play is driving incredible operating momentum and we see that accelerating as it continues to roll out. We now expect Comcast Digital Voice penetration to exceed 20% by the end of 2009. As we have been reporting over the past several quarters, the triple play is increasing the already strong growth of our video and high-speed Internet services - we expect to deliver at least 7 million RGU additions per year through 2009. The fundamentals of our business are extremely strong and we have never been more enthusiastic about the future of our company."
Some key predictions by Comcast:
- Cable revenue projected to grow a compounded average of 12% per year for 2007-2009.
- Cable Operating Cash Flow (OCF) projected to grow a compounded average of 14% per year for 2007-2009.
- Comcast Digital Voice (CDV) projected to reach a penetration level of 20-25% of the Company's available homes passed.
Some other notes and key metrics from the investor presentations:
- Served over 4 billion VOD streams to date, including 203 million in March 2007 compared to 144 million in March 2006
- Of homes passed, Comcast video has a 51% penetration rate, High-speed data (HSD) is at 26% and Digital Voice is 7%
- 13 million customers now have access to ON Demand services
- Pay per view revenue increased more than 20% on average over the past nine quarters
- the percentage of analog customers has declined from 53% in 2003 to an estimated 25% in 2007
- 4.7 million HDTV subscribers at the end of Q1 2007, compared to 4.2 million at the end of Q4 2006
- 12.0 million High-speed Internet customers at the end of Q1 2007, compared to 10.1 million at the end of Q1 2006
