Comcast's Broadband Customer Loss Drives Stock Plunge

Key Takeaways:

* Comcast's broadband customer base declined by 139,000, exceeding expectations.
* The loss is attributed to both residential and business subscribers.
* The company reported strong fourth-quarter earnings and revenue despite the customer decline.

Subscriber Loss Weighs on Shares

Shares of Comcast (CMCSA) plummeted on Thursday, reaching their lowest point in over two years. The cable and media giant reported a subscriber loss of 139,000 in its fourth-quarter domestic broadband business, significantly more than the 100,000 loss predicted by CEO Dave Watson last month.

Strong Financial Performance Offsets Losses

Despite the disappointing subscriber numbers, Comcast recorded impressive fourth-quarter results. Adjusted earnings per share (EPS) reached $0.96, surpassing Visible Alpha forecasts. Revenue grew by 2% year-over-year to $31.92 billion, exceeding estimates.

Connectivity & Platforms revenue rose by 5% to $11.5 billion, while Peacock revenue surged by 28% to $1.3 billion. CEO Brian Roberts highlighted Comcast's "best financial performance in our company's 60-year history," citing record revenue, EBITDA, EPS, and cash flow.

Market Reaction

The stock market reacted negatively to the subscriber loss, sending Comcast shares down over 11% on Thursday morning. Over the past year, the company's stock value has depreciated by almost 30%.