Comcast Business (NASDAQ: CMCSA) is seeing its bet on the larger business market paying off as the segment has exceeded a $5 billion revenue run rate, while maintaining 20 percent growth.
Speaking to investors during the fourth quarter 2015 earnings call, Brian Roberts, chairman and CEO of Comcast, said that Comcast Business' new Enterprise division winning a number of new customers.
To date, Comcast Business' Enterprise division has signed up over 20 large enterprise customers and has multiple eight figure deals already signed.
"We recently launched into the enterprise segment and have some good early traction in this market to go along with the robust share gains in small and medium-size businesses, said Roberts said, according to a Seeking Alpha transcript. "Overall, our progress during 2015 sets up incredibly well to be successful in 2016 and beyond."
Business Services was once again a large contributor of cable revenue growth in the fourth quarter, with revenue increasing 18.9 percent to $1.3 billion.
The service provider sees the cable business growth coming from three main sources: small business, medium business and its new enterprise division.
"We have three engines of growth in Business Services, each at a different stage of development," said Michael Cavanagh, CFO and senior EVP for Comcast during the earnings call. "Small business, which has healthy market penetration and generates the majority of our revenue, mid-size business, where our market penetration is still less than 10 percent, but is growing at a higher rate, and our recently announced enterprise division that targets Fortune 1000 companies and is gaining traction, with more than 20 large enterprise customers and multiple eight figure deals already signed."
Throughout the quarter, Comcast Business continued to gain momentum, signing multiple business services deals including one with the Saramento Kings and Connecticut's College & Crown development.
Comcast Business was aggressive on the network buildout front. In January, it began constructing a 10 Gbps-capable fiber network in Huntsville, Ala., which will enable the provider to deliver Ethernet and related IP-based and cloud-based voice solutions.
Huntsville is one of many destinations where Comcast Business has been extending its fiber network. The provider has made similar expansions into Minnesota's Twin Cities area to extend services to 700 additional business customers as well as Meyers Business Park in Chico, Calif., the East Bay region of California, Denver and New London County, Conn.
- see the Seeking Alpha earnings transcript (sub. req.)
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