Comcast Shares Dive After Broadband Subscriber Loss, Stagnant Peacock Growth
Key Metrics:
* Broadband customer loss of 131,000 in Q4
* TV subscriber loss of 311,000
* Peacock subscriber count remains at 36 million
* Adjusted EBITDA loss of $372 million
Comcast's stock (CMCSA) plunged over 10% Thursday as the company reported a significant decline in broadband subscribers and failed to attract new Peacock subscribers.
The loss of broadband users, exceeding initial estimates, underscores competitive challenges from mobile providers offering flexible and cost-effective plans. Despite the setbacks, Comcast remains committed to its connectivity business, aiming to leverage its strengths amidst the streaming surge.
"Wireless is a differentiator as our converged offers provide great savings to consumers," said Comcast president Michael Cavanagh. "We will shift our strategy to package mobile with higher-tier broadband products."
However, Comcast faces declining TV subscribers as consumers opt for streaming services. The company recently launched a sports and news package with Peacock, priced below competitors like YouTube TV.
Peacock's growth remains stagnant, with no subscriber gains or losses in Q4. While Comcast improved profitability, analysts remain cautious about the streamer's prospects.
"Peacock is finding it expensive to compete in the streaming wars," said Ross Benes of Emarketer. "As cord-cutting continues, selling off TV networks makes sense, but buyer prospects are limited."
Comcast announced plans to spin off its cable properties, excluding Bravo, into a separate company, SpinCo. The company remains optimistic about the venture, believing it will be well-positioned to navigate the evolving media landscape.