Comcast Loses 365,000 TV and 87,000 Internet Subscribers In The 3rd Quarter of 2024
Comcast has released its third-quarter 2024 earnings report, revealing a mixed bag of results. While the company exceeded financial expectations with increased adjusted EPS and strong free cash flow, it also experienced significant subscriber losses in its TV and internet services.
Subscriber Losses:
Comcast lost 365,000 TV customers and 87,000 internet customers during the third quarter. This continues a trend of cord-cutting and increased competition in the broadband market.
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Positive Financial Performance:
Despite subscriber losses, Comcast demonstrated strong financial performance in other areas:
Adjusted EPS increased 3.3% to $1.12.
The company generated $3.4 billion in free cash flow.
Connectivity & Platforms adjusted EBITDA remained consistent with the prior year, and adjusted EBITDA margin increased.
Domestic broadband average revenue per customer increased 3.6%, driving broadband revenue growth of 2.7% to $6.5 billion.
Domestic wireless customer lines increased 20% year-over-year, with 319,000 net additions in the third quarter.
Growth in Business Services and Studios:
Comcast also reported growth in its Business Services and Studios segments:
Business Services Connectivity adjusted EBITDA increased 4.2%.
Studios adjusted EBITDA increased 9.0%, driven by the successful theatrical performance of “Despicable Me 4” and “Twisters.”
Peacock’s Continued Growth:
Peacock, Comcast’s streaming service, continued its growth trajectory:
Paid subscribers increased 29% year-over-year to 36 million.
Peacock revenue increased 82% to $1.5 billion.
Olympics Success:
Comcast’s exclusive broadcast of the Paris Olympics proved to be a major success:
Average daily viewers across linear networks and Peacock increased 82% compared to the 2021 Summer Olympics.
Incremental Olympics revenue in Media reached a record high of $1.9 billion.
Challenges and Opportunities:
While Comcast faces challenges in the form of subscriber losses in TV and internet services, the company’s strong financial performance, growth in other segments, and the success of Peacock and the Olympics demonstrate its ability to adapt to the changing media landscape. Comcast’s continued investment in broadband, wireless, and streaming positions it for future growth in the evolving entertainment industry.
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