Comcast's Broadband and Peacock Struggles Impact Q4 Earnings

Comcast (CMCSA) reported a decline in broadband customers and stagnant growth in its Peacock streaming service in the fourth quarter of 2022.

Broadband Losses Exceed Expectations

The company lost 131,000 broadband users, exceeding CEO Dave Watson's estimate of 100,000. Competition from mobile providers like Verizon, T-Mobile, and AT&T offering flexible plans to lower-income consumers contributed to the losses.

Peacock Growth Stalls

Peacock reported no subscriber growth or loss, remaining at 36 million paying users. While Comcast improved profitability with an adjusted EBITDA loss of $372 million compared to the same period last year, analysts remain cautious about Peacock's growth prospects.

Cable Cord-Cutting Continues

Comcast also reported a decline of 311,000 TV consumers as consumers shift towards streaming services. Despite announcing a new sports and news TV package, the company faces challenges from virtual competitors like YouTube TV.

Spin-Off of Cable Properties

Comcast plans to spin off its cable properties, excluding Bravo, in the coming months. The spin-off aims to address industry challenges posed by cord-cutting. The new company, dubbed SpinCo, will hold NBCUniversal's cable networks, including USA, CNBC, MSNBC, and others.

Financial Performance

Comcast reported a decline in broadband customers, stagnant Peacock growth, and a decrease in TV viewers. However, the company improved profitability with a reduced EBITDA loss.