Comcast broadband losses widen as competitive pressure hits core business

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Comcast broadband losses widen

Highlights

Comcast broadband subscribers declined by 144,000 in Q3, missing FactSet estimates and accelerating from a 91,000 loss a year ago, amid fierce pricing competition.
NBCUniversal Q3 revenue rose 13% to $5.36 billion on media strength, with Peacock reporting $261 million quarterly pre-tax profit versus a $217 million prior-year loss.
Theme park segment revenue fell 4.4% to $2.60 billion, undershooting LSEG estimates due to weaker Orlando demand and lower tourist traffic from China to Japan attractions.

Third-quarter subscriber decline and earnings beat

As reported by Reuters, Comcast says broadband users decreased by 144,000 in the third quarter, worse than the 116,800 losses analysts polled by FactSet expected and above the 91,000 decline recorded a year earlier. The pressure comes as carriers including AT&T and smaller fiber providers cut prices, making it harder for Comcast to keep subscribers without offering deep discounts.

Comcast also is reportedly planning a significant number of layoffs as it restructures the connectivity business. Despite the subscriber pressure, the company reports adjusted profit of $1.07 per share, above analysts' estimate of 98 cents per share.

NBCUniversal gains ahead of planned spinoff

NBCUniversal's media businesses, including studios, theme parks and the Peacock streaming service, are set to separate from Comcast as part of a planned spinoff by mid-2027. The media division posts a 13% increase in third-quarter revenue to $5.36 billion, helped by soccer World Cup programming and "Love Island USA" on Peacock.

Universal Studios gets a boost from "The Odyssey," which becomes the highest-grossing film in the studio's history and helps lift pre-tax profit for the unit by 18.6%. Peacock reports quarterly pre-tax profit of $261 million, compared with a $217 million loss a year earlier.

Theme parks remain a weaker spot for the division. The segment posts a 4.4% revenue decline to $2.60 billion, below analysts' average estimate of $2.71 billion compiled by LSEG, as demand softens in Orlando and geopolitical tensions continue to deter Chinese tourists from visiting Japan.

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