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In recent statements, Comcast Cable CEO Dave Watson informed investors that the company anticipates losing over 100,000 broadband subscribers in the upcoming fourth quarter as the broadband market continues to face intense competition.
Following these comments made at the UBS Global Media and Communications Conference, Comcast’s stock saw a significant decline, dropping nearly 10%. This downturn highlights ongoing challenges within the cable broadband sector, which has been experiencing a sustained reduction in subscribers.
Executives at Comcast attribute this decline to several factors, including a slowdown in real estate transactions that has reduced the number of new customers subscribing when moving into new homes. Additionally, increased competition from wireless providers like Verizon and T-Mobile has intensified the challenge faced by Comcast in retaining and attracting customers.
Watson emphasized the ongoing aggressive competition, particularly among budget-conscious consumers. He noted that this competitive environment has been a constant pressure point for the business throughout the year. He also projected that the subscriber losses in the fourth quarter would mirror the earlier part of the year, where Comcast averaged losses close to 100,000 customers each quarter.
Despite these challenges, Watson pointed out that Comcast’s broadband business remains stable regarding its higher-tier internet packages. His cautionary outlook follows a somewhat better third quarter performance in which Comcast reported a net loss of 87,000 broadband subscribers. However, excluding the impact of the Affordable Connectivity Program’s conclusion—which had provided discounts to qualifying low-income customers—Comcast noted an increase of approximately 9,000 subscribers.
As of September 30, Comcast’s broadband customer base stood at nearly 32 million across the United States. Watson credited the third-quarter gains to seasonal factors, such as the back-to-school period, which typically boosts broadband usage, and the promotional efforts surrounding NBCUniversal’s coverage of the Summer Olympics.
It is noteworthy that Comcast owns NBCUniversal, which is the parent company of CNBC and holds broadcasting rights for all U.S. Olympic events through 2032.
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