Service and Equipment Rate Increases Help Boost Comcast Quarterly Profits
CED Magazine – May 1, 2013
Rate hikes for video services and customer upgrades to high-definition packages and digital video recorders fueled a 17 percent profit surge for Comcast in the first quarter of 2013, according to CED magazine.
Increased revenue was spurred by price increases for cable TV services, DVRs and digital transport adapters. Subscribers’ cable bills increased $3.40 monthly on average when compared with the same period last year.
Comcast also reported that its cable programming expenses rose by 8.5 percent in the first quarter. Vice chairman and chief financial officer Michael Angelakis said that he expects this trend of low double-digit increases to continue over the remainder of 2013.
The article noted that 60,000 Comcast cable TV subscribers dropped video services in the first quarter, an increase from 37,000 customer losses reported in the same period in 2012. Half of those losses were from households subscribing only to video services.
According to the CED report, Angelakis said that some of the loss of subscribers appears to be attributable to higher prices.
Comcast 2013 Rate Increases Affect 72 Percent of Its Customer Base
Comcast Q1, 2013 Earnings Report – May 1, 2013
Rate increases implemented by Comcast during the first quarter of 2013 affected nearly three-fourths of its customer base, according to a report given by Michael Angelakis, Comcast vice chairman and chief financial officer, during the company’s recent earnings call.
“During the quarter, we accelerated the timing of rate adjustments and implemented increases to 72 percent of our customer base, versus 62 percent in the first quarter of 2012. In addition, we implemented equipment price increases for digital transport adapters and high-definition DVRs to this larger base, which in combination negatively impacted our customer base during the quarter,” said Angelakis.