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Comcast broadband losses deepen as competition pressure core business

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In short

Comcast reported a significant decline in broadband customers, losing 144,000 compared to FactSet's estimate of 116,800, marking the first time the company has reported losses in its core business since 2012. The company is planning layoffs to restructure its connectivity business, while its media division, including studios, theme parks, and Peacock streaming service, is set to separate from the company as part of a planned NBCUniversal spinoff by mid-2027. The media division reported a 13% increase in revenue and a 18.6% increase in pre-tax profit, with a profit of $261 million and adjusted profit of $1.07 per share, above the estimate of 98 cents per share.

Key points

  • Comcast's broadband losses have intensified, leading to a 144,000 customer decline.: Comcast's broadband losses have intensified, leading to a 144,000 customer decline.
  • The company is planning significant layoffs to restructure its connectivity business.: The company is planning significant layoffs to restructure its connectivity business.
  • Comcast's media division, including studios, theme parks, and Peacock streaming service,…: Comcast's media division, including studios, theme parks, and Peacock streaming service, is set to separate from the company as part of a planned NBCUniversal spinoff by mid-2027.

Sources checked by our analysis pipeline: 1

Oct 22 : 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 per cent for the unit

• The media division posted a 13 per cent increase in third-quarter revenue to $5.36 billion, driven by soccer World Cup programming and "Love Island USA" on Peacock

• 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 per cent 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

Original source: www.channelnewsasia.com

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