Cable's second quarter financials are mostly in, and as expected for the dog days of summer, the news wafted in like a lazy, warm breeze across an expansive porch.
Comcast
Talk at Comcast (NASDAQ:CMCSA) was peppered with competitive pressure and reassurances that the operator is up for the task.
"There have been several new entrants in the over-the-top video space, prompting existing competitors to respond with aggressive price points that have cut across multiple products. We continue to believe in our ability to compete effectively," said Michael Cavanagh, SVP and CFO.
Cavanagh noted that Comcast added 77,000 new net residential customer relationships during the quarter for a 6.4% increase over last year, with both video and high-speed data churn remaining at the lowest levels in 10 years. The company did experience a net loss of 45,000 residential video customers, while high-speed Internet was the largest contributor to overall cable revenue growth.
Nearly 55% of customers now take speeds of 100 Mbps or higher, and Comcast is continuing plans to roll out deployment of DOCSIS 3.1. The expectation is the technology will be available to the majority of homes passed by the end of the year.
Xfinity Mobile, launched in the middle of the second quarter, has been receiving good feedback from customers. "Our differentiated offerings are resonating, including our Gig data option and the ability for customers to mix and match and easily switch between two plans, as well as the inclusion of five lines in our convenient digital experience," said Brian Roberts, chairman and CEO, Comcast.
Most mobile customers are taking "by the Gig" vs. unlimited service, said David Watson, president and CEO, Comcast Cable. The partnership with Verizon (NYSE:VZ), which enables the operator to combine its WiFi-only service with cellular, is going well, he said.
"Mobile is an opportunity to expand consideration for our other products," Watson said. "It gives us an opportunity to talk about everything that we do. We're really encouraged about our early stage retail launches where we see that happening."
Although Roberts did not address recent suggestions in a Citigroup report that Comcast purchase Verizon, analysts speculate that the exec hinted in his remarks that this likely would not happen.
"No disrespect to wireless, but it's a tough business. I don't see something happening in that industry that we would envy a position that we don't have today," Roberts said, according to The Street.
Meanwhile, Comcast has been testing its Instant TV streaming service for a while, Watson said, and will launch it more broadly in the second half of the year. "It's ideal for certain segments and millennials in the test markets," Watson said. "There's lots of appeal, and different price points that we're testing."
Charter
During Charter Communications' (NASDAQ:CHTR) conference call, company execs spent a lot of time deciphering the intricacies of the integration of its legacy customers with those of Bright House and Time Warner Cable. Thirty percent of the customers acquired from those two companies are now in Charter's pricing and packaging. In areas where Spectrum (new pricing, packaging and branding) has been in place for at least three quarters, 43% of residential customers have Spectrum package products.
"Progression of product and package migration is virtually identical to what we saw at legacy Charter. More of our customers are getting better products with better and consistent pricing, which will drive the higher customer satisfaction, lower churn and greater value into our business," said Thomas Rutledge, chairman and CEO, Charter.
Charter is offering a minimum of 100 Mbps in more than half of its footprint, with a minimum of 60 Mbps in the remaining footprint. In June, the all-digital project was restarted in the 40% of TWC and 60% of Bright House that is not yet all digital.
"Most of the all-digital initiative will take place in 2018, but we are on schedule," Rutledge said.
Charter intends to launch a wireless service in 2018 under its MVNO agreement with Verizon and is working with Comcast to find ways the two operators can cooperate in order to "drive additional value" from common wireless MVNO efforts.
"We expect to generate significant growth ultimately in that MVNO and significant growth for Verizon," Rutledge said. "There are opportunities on a national level, which neither Comcast or Charter has as regional players, that come together in this MVNO and we'd like to take advantage of them."
Altice
At Altice (NYSE:ATUS), there was a focus on stepped-up fiber rollout in the United States, a successful listing of Altice USA on the New York Stock Exchange, and improvement in customer service metrics and margins, helped by investment in Operation Gigaspeed, the company's gigabit Internet deployment plan, initially launched by Suddenlink in 2014.
The proportion of Altice USA's new residential customers taking 100 Mbps or more increased to 79% in the second quarter. Forty percent of customers overall are now enjoying speeds better than 100 Mbps.
The average broadband speed taken by Altice USA's customers has increased to more than 90 Mbps in the second quarter, which Dexter Goei, chairman and CEO, Altice USA, said is double from when the acquisition of Optimum closed. "Furthermore, Suddenlink has been recognized as the fastest Internet service provider in the U.S.," he said.
Altice is finalizing beta testing of a new box, and rollout should begin in the "next month or so," said Michel Combes, Altice chairman and CEO. It will start with areas in the Optimum footprint and initially will be targeted toward triple- and double-play adds, as well as customer retention.