Comcast’s internet, TV customer losses top Wall Street estimates
Streaming companies and wireless providers have been luring away cable companies’ customers.
Comcast Corp. reported first-quarter losses of pay-TV and broadband customers that exceeded analysts’ estimates, a reflection of the growing competition from streaming companies and wireless providers.
Comcast, the largest U.S. cable provider, lost 199,000 domestic broadband customers during the first quarter, according to a statement Thursday, steeper than analysts’ estimates of 144,500. Pay-TV customers shrank by 427,000, compared with Wall Street projections for a loss of 409,300.
Earnings in the first quarter rose to $1.09 a share, excluding some items, beating the $1 average estimate of analysts. Revenue fell slightly to $29.9 billion and compared with Wall Street projections of $29.8 billion. Comcast shares closed down 3.71% on Thursday.
Phone companies like AT&T Inc. and T-Mobile US Inc. have been luring away cable companies’ internet access customers with fiber-based and wireless broadband services. Philadelphia-based Comcast announced a new internet plan earlier this month that locks in prices for five years for customers and includes a free wireless phone line for a year.
In streaming, Comcast’s Peacock service grew to 41 million customers, topping analysts’ estimates of 37.7 million. The company’s media division, NBC Universal, signed a deal in October that gave customers of Charter Communications Inc. free access to the ad-supported version of Peacock. Peacock’s revenue rose 16% to $1.23 billion, missing Wall Street’s forecast of $1.3 billion.
Unlike some of its streaming rivals, including Disney+ and Warner Bros. Discovery’s Max, Peacock has yet to become profitable and had an adjusted loss of $215 million, vs. analysts’ estimates of $405.4 million in losses.
Revenue at the theme parks division fell 5.2% to $1.88 billion during the first quarter. The Universal Studios Hollywood park was closed temporarily during the Los Angeles wildfires in January. The company has said preopening costs for Universal Epic Universe, a new theme park in Florida that will start welcoming guests on May 22, would total $150 million.
During a difficult time for the traditional home entertainment industry, Comcast is in the process of spinning off some of its cable networks into a separate company.