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Comcast Faces Subscriber Decline Amid Strong Financial Performance
Key Takeaways
Comcast’s latest financial report revealed a greater-than-expected drop in broadband subscribers, leading to a significant decline in its stock value. The company lost 139,000 broadband customers, a bigger loss than the anticipated 100,000. Nonetheless, Comcast reported a better-than-expected profit and sales for the fourth quarter.
Shares of Comcast (CMCSA) experienced a sharp decline, settling at their lowest point in over two years on Thursday following the announcement of a subscriber downturn.
The media powerhouse, which operates NBC, Peacock, and Xfinity, indicated that its total domestic broadband customer count fell to 31.8 million in the fourth quarter. This loss included 131,000 residential customers and 8,000 business subscribers.
Last month, CEO Dave Watson had signaled that the company would likely see a reduction of around 100,000 broadband customers, making this decline seem even more severe.
Q4 Results Highlight Financial Strength
Despite the concerning subscriber numbers, Comcast’s fourth-quarter performance showcased robust financial results. The company reported an adjusted earnings per share (EPS) of $0.96, accompanied by a 2% annual increase in revenue to $31.92 billion. Both figures surpassed market expectations set by Visible Alpha.
The revenue from Comcast’s Connectivity & Platforms segment experienced a significant uptick, rising by 5% to reach $11.5 billion, while the Peacock streaming service saw an impressive 28% jump to $1.3 billion in revenue.
Comcast’s CEO Brian Roberts emphasized the company’s strong performance, stating that it represents “the best financial performance in our company’s 60-year history,” highlighted by record revenue, EBITDA, and EPS alongside substantial free cash flow.
Despite these positive financial indicators, Comcast’s shares plummeted by more than 11% during Thursday’s trading, marking nearly a 30% loss in stock value over the past year.
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