Comcast Corporation (NASDAQ:CMCS.A) Q2 2016 Earnings Conference Call - Final Transcript

Jul 27, 2016 • 08:30 am ET

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Comcast Corporation (NASDAQ:CMCS.A) Q2 2016 Earnings Conference Call - Final Transcript

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Operator
Operator

Good morning, ladies and gentlemen, and welcome to Comcast's Second Quarter 2016 Earnings Conference Call. [Operator Instructions] Please note that this conference call is being recorded.

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

Executive
Jason Armstrong

Thank you, operator, and welcome, everyone. Joining me on this morning's call are Brian Roberts, Mike Cavanaugh, 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 as part 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.

As always let me now refer you to Slide number 2 which contains our Safe Harbor disclaimer and reminds 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-financial measures to GAAP.

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

Executive
Brian Roberts

Thank you, Jason, and good morning, everyone. We are really pleased with the second quarter results as we continue our terrific momentum this year. We increased revenue and operating cash flow thanks to broad-based strength across our businesses. As you will hear, we have many positive trends in each part of the company.

At Cable we achieved some of the best customer metrics in nearly a decade while posting strong operating cash flow growth. Our results this quarter provide further evidence that customers are responding favorably to many of our new initiatives. We added 115,000 customer relationships, which is more than triple the number we added in the second quarter of 2015. In what is normally a negative seasonal quarter, we lost only 4,000 Video customers, the best second-quarter result we have had in over 10 years.

On a trailing 12 month basis, we have now added about 90,000 Video customers, a remarkable improvement in the face of significant competitive and technological change and a testament to the investments we've made in our platform and breadth of content. X1 is now about 40% penetrated and we have deployed a total of 8 million voice remotes. We're rolling out 800,000 new voice remotes each month and customers love it. It's generating over 200 million commands per month. Overall, the feedback on X1 continues to be terrific and the voice remote is driving customer satisfaction with the platform even higher.

Next, at high-speed Internet, we added 220,000 customers, the best second-quarter result in eight years. Similar to Video, the improvement was driven by better customer retention. We started our rollout of DOCSIS 3.1 and expect this to continue to enhance the quality of our offering and ultimately our competitive advantage. We've been investing in improving the customer experience at every touch point, and we're very encouraged by our progress.

Many of the key indicators