Comcast Shares Decline Amid Drop in Broadband and Cable Subscribers
Comcast experiences a stock dip despite strong earnings and growth in Peacock subscribers, as broadband and cable customer losses continue.
HIGHLIGHTS
- Comcast's stock fell on Thursday, impacted by ongoing decreases in broadband and cable subscribers, despite surpassing quarterly earnings expectations and a significant rise in Peacock users.
- The company reported a loss of 199,000 U.S. broadband subscribers and 427,000 cable video customers compared to the previous year, reflecting a shift away from traditional cable TV.
- Peacock streaming service saw subscriber growth exceeding 20%, reaching a total of 41 million users.
Shares of Comcast Corporation (CMCSA) declined by over 5% during recent market sessions, as subscriber losses in broadband and cable overshadowed its impressive quarterly financial results and increased Peacock subscriber base.
In the first quarter, Comcast delivered adjusted earnings per share (EPS) of $1.09 on revenues of $29.89 billion, outperforming analysts’ forecasts of $0.99 EPS and $29.8 billion in revenue, according to Visible Alpha consensus estimates. This compares to an adjusted EPS of $1.04 and $30.06 billion in revenue from the same period last year.
The firm disclosed a year-over-year reduction of 199,000 broadband subscribers and 427,000 video customers in the U.S., signaling continued challenges in retaining traditional cable subscribers. Additionally, earlier Los Angeles wildfires negatively affected attendance and revenue at Comcast’s theme parks, which declined by 5.2%.
Despite these setbacks, Comcast CEO Brian L. Roberts highlighted the strong momentum in the Theme Parks division, noting the upcoming launch of the Epic Universe theme park in Orlando next month and plans for a new park in the United Kingdom.
Comcast’s streaming platform, Peacock, and its wireless segment, Xfinity Mobile, showed positive growth. Peacock’s subscriber base expanded by over 20% to 41 million, while Xfinity Mobile added 323,000 new domestic wireless lines compared to last year.
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