Comcast, (CMCSA) a leading global media and technology outfit, faced a tough day on the floor on Thursday as its shares took an 8% plunge after its Q3 report indicated a decrease in broadband subscribers. This slide occurred despite the company’s top and bottom lines surpassing expectations.
Loss of broadband subscribers triggers 8% shares drop for Comcast
The latest US subscriber numbers came in at 32.3 million. A year-on-year comparison shows a decrease of 18,000 subscribers, while Wall Street predicted an increase of roughly 3,600 subscribers.
Yahoo Finance reported that Comcast management chalked the subscriber losses up to an increasingly competitive market, with mobile providers such as Verizon (VZ), T-Mobile (TMUS), and AT&T (T) flexing their offerings to target lower-income groups. These companies all reported subscriber number increases.
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In an earnings interview, Jason Armstrong, the chief financial officer (CFO) for Comcast, indicated the company aims to balance broadband subscriber growth with average revenue per user (ARPU) growth. The company’s revenue grew by 3.8% compared to its third-quarter performance in 2022.
Armstrong predicted the books will reveal more subscriber losses when all is calculated for the fourth quarter. In addition to the broadband subscriber losses, Comcast also lost 490,000 US-based video subscribers as traditional cable services battle to overcome cord-cutting.
Brian L Roberts, Comcast chairman and chief executive officer (CEO), highlighted the positives in his key notes on the Q3 results. He said:
We delivered strong financial results in the third quarter, while also investing in long-term growth, accelerating share repurchase activity and maintaining our healthy balance sheet.
