Comcast reported Wednesday that 37,000 customers dropped video service, offset by 565,000 additional "triple-play" customers, as the company reported a 39 percent jump in profits.
Comcast also said that its X1 cloud-based DVR interface would be rolling out this quarter, with the first launch in an undisclosed major market.
"We are very enthusiastic about the progress we're making driving financial and operational excellence across the company," Brian Roberts, Comcast's chief executive officer, told analysts in a conference call Wednesday.
Comcast reported a 39 percent jump in profits to $1.45 billion for the first quarter of 2012, and 23 percent revenue growth to $14.88 billion, compared to a year ago.
Even though 37,000 customers "cut the cord" and dropped video service, 439,000 more added high-speed Internet service, with 565,000 new customers opting for the "triple-play" combination of voice, Internet, and video services. That works out to 38 percent of all Comcast's customers, up from 34 percent a year ago.
About 11.1 million customers pay for either HD service or a DVR, or about 54 percent of its 20.7 million digital customers, Comcast said. Today, 26 percent of Comcast's Internet customers opt for a higher-speed, and more expensive, pricing tier.
But good news for heavy users: "Right now we don't have plans to introduce any usage-based pricing," Neil Smit, the chief executive of the Comcast Cable subsidiary, told analysts.
The average video customer pays $143 per month, up 8 percent from a year ago, Comcast executives said. Smit also said that the Xfinity TV app has been downloaded a little over 5 million times, and interestingly, more people were using it for the remote-control capabilities than to stream video.
Comcast also added 164,000 voice customers, and executives said they plan to add free texting, readable voice mail, and Skype services throughout the year.
Comcast executives said they were also pleased with the success of their various service packages. Xfinity Home, which now includes a home security offering, is available in 72 percent of the homes Comcast serves. Streampix, which targets Netflix with VOD content, is now available to a "couple million customers," Roberts said. Recently, Comcast and Verizon expanded their quad-play deal, which includes cell-phone service via Verizon Wireless, to six new markets.
Comcast's X1 cloud services program will roll out in a "major market" this quarter, with a wider expansion over the course of the year. The X1 interface taps into the cloud to show more up-to-date content and promotions, and Comcast executives said it will even serve as a platform for an undisclosed quantity of apps.
"I think the range we'll see this year will be in the hundreds of thousands dependent upon hardware, primarily," Smit said. "It can go on COAM devices and advanced set tops as well the platform can. I think the real advantage of it was, we put so much of our information up in the cloud. It enables us to innovate more quickly. So putting our VOD content on the Xbox was very, relatively simple and a much quicker launch because we had so much up in the cloud. So we're excited about it. I think the impact of it will be hopefully more customers wanting to subscribe to our video service, and less (sharing) because they are more pleased with our product."
First quarter broadcast television revenue increased 36.9 percent to $1.9 billion and included $259 million of revenue generated by the Super Bowl, Comcast said.
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