Comcast Corporation (NASDAQ:CMCS.A) Q1 2016 Earnings Conference Call - Final Transcript

Apr 27, 2016 • 08:30 am ET


Comcast Corporation (NASDAQ:CMCS.A) Q1 2016 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to Comcast's First Quarter 2016 Earnings Conference Call. [Operator Instructions]

I will now turn the call over to Senior Vice President, Investor Relations, Mr. Jason Armstrong. Please go ahead, Mr. Armstrong.

Jason Armstrong

Thank you, operator and welcome, everyone. Joining me on this morning's call are Brian Roberts, Mike Cavanagh, Steve Burke and Neil Smit. Brian and Mike will make formal remarks and Steve and Neil will also be available for Q&A. As a reminder, because of the FCC's anti-collusion rules for the Broadcast incentive auction, we cannot discuss or answer any questions related to the auction or spectrum today. Nor will we be commenting about recent rumors or speculation about any M&A transaction.

As always let me now refer you to Slide number 2, which contains our Safe Harbor disclaimer, and remind you that this conference call may include forward-looking statements subject to certain risks and uncertainties. In addition, in this call we will refer to certain non-GAAP financial measures. Please refer to our 8-K for the reconciliation of non-GAAP financial measures to GAAP.

With that let me turn the call to Brian Roberts for his comments. Brian?

Brian L. Roberts

Thank you, Jason and good morning, everyone. We are off to a great start in 2016. We increased revenue and operating cash flow in the first quarter while continuing to prudently invest in the businesses to further strengthen our competitive position and drive growth. I believe our cable business is really differentiating itself, fostering real innovation that is translating into the strong momentum you see in these results. We are demonstrating notable improvements in customer service, investing to put the industry's fastest Wi-Fi in homes and to be the first to bring customers widespread access to gigabit speeds through DOCSIS 3.1 technology. And, with X1, delivering a platform and a breadth of content that is unrivaled.

As this quarter once again shows, our customers are responding to all of this. We increased our customer relationship growth by 36% from the first quarter of 2015 and now have achieved 50% penetration of our homes passed. We added 53,000 video customers in the quarter making us video net add positive over the past 12 months. This important milestone has eluded us for nearly a decade and we have now accomplished it within the context of an unprecedented pace of change in this industry including the steady drumbeat of new competitors and new offers.

Our voice remotes are the latest example of how we are differentiating ourselves in the market. In a short period of time we have deployed 6 million of these new remotes thanks to Tony Werner and his technology team's great customer experience we are getting wonderful feedback from our customers already. We added another 438,000 broadband subscribers in the quarter, the best first quarter we have had in four years. Much like our improvement in video, the progress we are making is largely a result of improvements in churn. We are upping speeds, delivering best-in-class Wi-Fi