Comcast Hit Hard By Subscriber Exodus, Nearly 630,000 Customers Gone In Q1

Comcast Corp CMCSA stock tanked Thursday after it reported its first-quarter results.

The Philadelphia-based company reported a quarterly decline of 0.6% year-over-year to $29.89 billion, beating the analyst consensus estimate of $29.76 billion.

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The company reported adjusted EPS of $1.09, beating analyst consensus estimates of 98 cents. Its media segment posted revenue growth of 1.1% Y/Y to $6.44 billion.

Peacock’s paid subscribers increased by over 20% Y/Y to 41 million, while revenue grew by 16% year over year to $1.2 billion.

Studios’ revenue increased by 3.0% Y/Y to $2.83 billion due to higher content licensing and digital sales of  Wicked.

Theme Parks revenue decreased by 5.2% Y/Y to $1.88 billion due to lower revenue at its domestic theme parks, driven by lower guest attendance including the impact of the Hollywood wildfires.

Connectivity & Platforms adjusted EBITDA grew 1.5% Y/Y to $8.3 billion, with a margin expansion of 90 bps to 41.4%.

Comcast said it generated $5.42 billion in free cash flow during the quarter.

Comcast lost 199,000 broadband customers in the period amid rivalry with telecom companies.

AT&T Inc’s T Consumer Wireline segment had 261 thousand AT&T Fiber net adds during the quarter.

Verizon Communications Inc VZ had 339 thousand broadband net additions during the quarter.

Comcast also lost 427,500 video subscribers as streaming giants like Netflix Inc NFLX gained traction.

Total domestic wireless line net additions reached 323 thousand.

What’s Next: Comcast CEO Brian L. Roberts expressed excitement about Epic Universe’s grand opening in Orlando in May and its plans to bring a new world-class theme park to the UK. 

Price Action: At the last check on Thursday, Comcast stock was down 3.54% at $33.25 premarket.

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