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​Comcast’s Q3 highlights how to navigate customer shifts, end of the cable

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Comcast’s third quarter results were better than expected and the familiar storyline revolves around how customers are cutting the cord. That storyline is legit, but Comcast’s broadband business is booming and its move to embrace and integrate over-the-top services with its X1 platform appears to be paying off.

At a high level, Comcast reported third quarter earnings of $2.88 billion, or 62 cents a share, on revenue of $22.13 billion, up 5 percent from a year ago. Non-GAAP earnings for the third quarter were 65 cents a share. Wall Street was looking for earnings of 61 cents a share on revenue of $21.82 billion.

In addition, Comcast saw its business services unit continue to deliver strong growth with third quarter revenue of $1.8 billion, up 10.6 percent from a year ago. But the notable surge in the third quarter, came from Comcast’s high-speed Internet business as revenue jumped 9.6 percent.

Comcast’s digital transformation journey:

Comcast added 363,000 high-speed Internet customers in the quarter to more than offset 106,000 video customer net losses. A 35,000 net loss in voice customers was offset by 42,000 customer additions for security and automation.

If you break those customer relationships down, it’s clear that Comcast is losing the bundle, but retaining single product customers. Add it up and Comcast is navigating shifts in its customer base as well as any company.

On a conference call with analysts, Comcast CEO Brian Roberts said:

Customer relationship net adds of 288,000 were driven by 363,000 net new Broadband customers, the best third quarter in 10 years. Collectively, residential Broadband and business services revenue increased by nearly 10%.

Roberts added that the move to look at its broadband holistically as a product–rebranded xFi–adding new features like parental controls and hooks into the smart home have paid off. “By aggregating and integrating everything from linear TV, to applications like Netflix, YouTube and soon, Amazon Prime Video, X1 delivers an unmatched user experience and the broadest range of content that underscores the value of our broadband service,” said Roberts.

comcast-customer-relationships-q3.png

The other thread worth noting is that Comcast’s ability to keep single product customers enables it to cross-sell another bundle in the future. For instance, Comcast’s wireless business just past more than 1 million customer lines. Perhaps the broadband and mobile bundle is the new cable-ish package for customers.

Comcast certainly has its challenges ahead. For instance, 5G will create a new set of broadband competitors. In addition, Comcast still has to get its networking blocking and tackling down. A series of outages for business customers spurred a same old Comcast refrain. But it’s hard to count Comcast out given the way it has navigated things so far.

Related:

Comcast Business launches analytics for SmartOffice video, motion detection

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2022 BMW M8 Competition range revealed with bigger screens and better lights

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German automaker BMW has updated its 2022 M8 Competition sport-luxury car. You can still get an M8 Competition in three body styles (2-door Coupe, 2-door Cabriolet, and 4-door Gran Coupe), sharing the same 4.4-liter twin-turbocharged V8 engine with 617 horsepower and 553 pound-feet of torque.

Images: BMW AG
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Tesla Cybertruck delayed again plus Elon Musk squashes $25k EV rumors

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Tesla closed out 2021 with a bumper year, besting Q4 estimates and pushing EV deliveries past 300,000, though Elon Musk tempered hopes for the arrival of the Cybertruck and more affordable models. Revenue in the year as a whole grew 71%, Tesla announced, describing 2021 as “a breakthrough year” for the automaker, but some of the most anticipated electric vehicles are still some way out.

Tesla

No Tesla Cybertruck until 2023

The most conspicuous project that Tesla has underway is undoubtedly the Cybertruck. The oddly-shaped all-electric pickup proved controversial when Elon Musk first revealed it, and glimpses of development prototypes in the intervening years haven’t dimmed its ability to polarize opinion. Undoubtedly the most frequently-asked question, however, is when Tesla actually might put the Cybertruck into production.

Tesla

Tesla’s investor deck continues with the same, vague timeline as has been stated in previous releases. “We are making progress on the industrialization of Cybertruck, which is currently planned for Austin production subsequent to Model Y,” the automaker says.

Speaking on the investor call, however, Musk confirmed that the Cybertruck wouldn’t go into production this year. The primary focus for Tesla, the CEO explained, would be ramping production of its existing models, like the popular Model 3 and Model Y. They’re still in strong demand, with orders for some configurations of Model Y not expected to be delivered until August 2022.

Tesla Cybertruck pricing

Tesla screenshot by SlashGear

For the Cybertruck, there are still technological hurdles to be worked through, Musk admitted. The automaker is also still trying to figure out how to make it affordable: there was widespread surprise when Tesla announced the full-size electric pickup would have a starting price of around $40,000 when it began taking reservations in late 2019. For the moment, Musk said, the hope is that production can begin sometime in 2023.

Don’t expect the Tesla Roadster any time soon, either

What goes for the Cybertruck, also goes for Tesla’s rebooted Roadster. Also the spur of no shortage of reservation deposits – or the full $250,000 apiece in advance for those wanting one of the first 1,000 “Founder’s Series” cars – the Roadster was originally intended to go into production in mid to late 2021. That was delayed to 2022, and then to 2023.

Tesla Roadster

Tesla

The good news is that it’s still, apparently, on track for that timescale, though as Tesla feels the impact of the supply chain issues affecting the whole auto industry that could still change in the meantime. Chip constraints were name-checked by Musk as being a primary bottleneck for 2021 production of its cars, arguing that if Tesla tried to introduce new models in 2022 it would only have the overall impact of cutting total production output. The need to assign resources to new models would take away from the ability to build cars like the Model 3 and Model Y, he pointed out.

Engineering and tooling-up for the upcoming Tesla models may still begin in 2022. However they won’t go into production until 2023 at the earliest.

The $25,000 Tesla isn’t happening

Tesla line-up

Tesla

Though Tesla hasn’t been affected by the “market adjustments” that have seen dealers of other brands add thousands or even tens of thousands to the sticker price of a new car, it’s clear that the EV-maker is still focused on the trims with the biggest profit margins. Despite previous chatter of a $25,000 Tesla that could undercut even the most affordable Model 3, Musk says that’s simply not on the cards.

“We have too much on our plate,” the CEO said during the investor call.

The reality is, while Tesla has been surprisingly well placed for dealing with the supply chain crunch – including making admirable use of existing chip supplies by reprogramming its software to suit – like most car companies it can’t build as many as it would like to. Focusing on maximizing the return on each vehicle is the inevitable result, not only by prioritizing the more expensive configurations, but on post-sale software enhancements too. Indeed, “over time, we expect our hardware-related profits to be accompanied with an acceleration of software-related profits,” the investor deck points out.

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This carbon 3D-printed Rolls-Royce Cullinan is a $500,000 upgrade

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The Cullinan is the Rolls-Royce of SUVs, so what does this make 1016 Industries’ carbon-fiber, 3D-printed Cullinan? You can call it anything you like, but it is indeed a dignified way to go sporty. We highly prefer it over the quirky Mansory Rolls-Royce Cullinan unveiled last year for the 50th founding anniversary of the United Arab Emirates, and it’s all thanks to the crafty use of 3D printing for the details.

Images: 1016 Industries
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