Comcast broadband and TV losses grow as streaming competition rises

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 US 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. Also read: Tracking upfront and NewFront updates 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, versus 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. —Bloomberg News Data-driven Marketing Playbook: Join industry leaders on May 22 to explore how data can drive marketing strategies, optimize media buying and improve customer engagement. Learn more here.

Comcast broadband and TV losses grow as streaming competition rises

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