Comcast reports higher-than-expected losses in internet and TV subscribers, surpassing Wall Street estimates.

Comcast Corp. has reported a significant decline in both pay-TV and broadband customers during the first quarter of the year, with losses surpassing analysts’ expectations. This trend underscores the increasing competition faced by traditional cable providers from streaming services and wireless internet providers.

According to the company’s latest statement, Comcast, the largest cable operator in the United States, experienced a loss of 199,000 domestic broadband subscribers, exceeding the predicted loss of 144,500. The pay-TV segment also reported a decrease of 427,000 customers, compared to Wall Street’s forecast of a loss of 409,300.

Despite the customer losses, Comcast’s earnings for the first quarter showed a positive trend, rising to .09 per share after excluding certain items. This figure surpassed analysts’ average estimate of .00 per share. However, revenue experienced a slight decline, landing at .9 billion, in line with predictions of .8 billion. Following the announcement, Comcast’s stock closed down 3.71% on the trading day.

The competitive landscape has evolved, particularly as telecommunications companies such as AT&T Inc. and T-Mobile US Inc. are attracting broadband customers with their fiber-optic and wireless services. In response to this growing competition, Comcast recently introduced a new internet plan that offers a price lock for five years and includes a complimentary wireless phone line for customers in the first year.

On a more positive note, Comcast’s streaming service, Peacock, has seen growth, reaching 41 million subscribers, which surpassed forecasts of 37.7 million. Despite this increase in their media division, which includes the NBC Universal brand, Peacock reported quarterly revenue of .23 billion, which was shy of Wall Street expectations of .3 billion. It’s important to note, however, that Peacock has not reached profitability yet, reporting an adjusted loss of 5 million, markedly better than the expected loss of 5.4 million.

Furthermore, Comcast’s theme parks division faced challenges, as revenue declined by 5.2% to .88 billion during the quarter. The temporary closure of Universal Studios Hollywood due to wildfires in Los Angeles contributed to this downturn. The company has acknowledged the impending preopening costs associated with its new theme park, Universal Epic Universe, slated to welcome guests starting on May 22, amounting to approximately 0 million.

As Comcast navigates these challenges in the home entertainment landscape, the company is also in the process of spinning off certain cable networks into a separate entity, indicating a strategic shift amid a rapidly changing market. Media News Source.