Oct 22 (Reuters) – Comcast lost more broadband customers than expected in the third quarter as fierce competition chipped away at its core business, while NBCUniversal benefited from gains in theatrical and streaming ahead of its planned spinoff next year.
Aggressive price cuts by carriers such as AT&T and smaller fiber providers are making it harder for Comcast to retain broadband subscribers without offering heavy discounts.
Here are more details:
• Broadband users decreased by 144,000 in the third quarter, the company said on Thursday. That is higher than the 116,800 losses estimated by analysts polled by FactSet and the 91,000 decrease reported in the year-ago period
• The company is reportedly planning significant number of layoffs to restructure the connectivity business
• Comcast’s media businesses, including its studios, theme parks and Peacock streaming service, are set to separate from the company as part of the planned NBCUniversal spinoff by mid-2027
• “The Odyssey” was a bright spot for Universal Studios, becoming the highest-grossing film in its history and helping drive pre-tax profit up 18.6% for the unit
• The media division posted a 13% increase in third-quarter revenue to $5.36 billion, driven by soccer World Cup programming and “Love Island USA” on Peacock
• Comcast shares rose about 2% in premarket trading
• Peacock reported a quarterly pre-tax profit of $261 million, compared with a $217 million loss a year ago
• NBCUniversal’s theme park unit is seeing weaker demand in Orlando while geopolitical tensions continue to deter Chinese tourists from visiting Japan
• The segment reported a 4.4% decline in revenue to $2.60 billion, missing analysts’ average estimate of $2.71 billion, according to data compiled by LSEG
• Comcast reported adjusted profit of $1.07 per share, above the estimate of 98 cents per share
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shilpi Majumdar)
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