Comcast Experiences Significant Drop in Broadband Subscribers Amid Strong Quarterly Performance
Comcast reported a notable decline in broadband subscribers for the fourth quarter, overshadowing positive results driven by successful holiday releases like “Wicked.” This news led to a 4% drop in the company’s shares during premarket trading. The broadband segment has been increasingly challenged by competitors such as AT&T and Verizon, who are gaining market share by offering bundled 5G wireless plans alongside high-speed fiber services. In the latest quarter, Comcast lost 139,000 broadband customers, exceeding FactSet’s estimate of a 91,000 loss, and was further impacted by Hurricanes Milton and Helene, which disrupted businesses in Florida.
Despite the subscriber loss, Comcast’s overall quarterly performance showed promise. Total revenue increased by 2.1% to $31.92 billion, surpassing estimates of $31.64 billion, according to LSEG data. The adjusted profit of 96 cents per share also exceeded expectations by 10 cents. The film “Wicked,” a cinematic adaptation of the Broadway prequel to “The Wizard of Oz,” generated approximately $700 million at the global box office, while the animated film “The Wild Robot” earned over $300 million, contributing to a nearly 7% rise in studio revenue. Additionally, Comcast announced a $15 billion share buyback program.
Peacock’s revenue surged by 27.8% due to price increases implemented last year in anticipation of the Olympics. However, the streaming service’s subscriber count remained unchanged at 36 million, as Comcast focused on retaining users following record growth in the previous quarter. These results come at a pivotal moment for Comcast, as the company aims to separate its primary profit drivers, such as the studio and theme park divisions, from the declining cable TV segment by spinning off select NBCUniversal cable networks. The cable TV division experienced a loss of 311,000 subscribers due to consumer cord-cutting, a decrease from the 389,000 losses reported a year earlier and lower than FactSet’s estimate of 333,000.
The theme park division reported flat revenue of $2.37 billion, but core earnings fell by 3.9% due to pre-opening expenses for the upcoming Universal Epic Universe, set to open in May.
