(Reuters) -Comcast reported a steep decline in broadband subscribers for the fourth-quarter on Thursday, overshadowing upbeat results fueled by blockbuster holiday releases such as “Wicked” and sending its shares 4% lower in premarket trading.
The company’s broadband unit has faced increasing competition in recent quarters from telecom firms such as AT&T and Verizon, who are trying to capture market share by bundling 5G wireless plans with high-speed fiber.
Comcast lost 139,000 broadband customers in the quarter, higher than FactSet estimates of a 91,000 loss, as it was also hurt by Hurricanes Milton and Helene that disrupted Florida businesses during the quarter.
However, the quarterly results were a bright spot for the company. Its total revenue rose 2.1% to $31.92 billion, beating estimates of $31.64 billion, according to LSEG data.
Its adjusted profit of 96 cents per share also topped estimates by 10 cents.
“Wicked”, a movie adaptation of the Broadway prequel to “The Wizard of Oz”, earned roughly $700 million at the global box office, while the animated feature “The Wild Robot” grossed more than $300 million and helped power a near 7% rise in Comcast’s studio revenue.
The company also unveiled a $15 billion share buyback program.
Peacock’s revenue rose 27.8% thanks to price hikes made last year ahead of the Olympics. The streaming service’s subscriber count, however, stayed flat on-quarter at 36 million as Comcast sought to retain users after record additions in the third quarter.
The results come at a crucial time for Comcast as it looks to unchain its main profit drivers such as studio and theme parks business from the declining cable TV unit by spinning off select NBCUniversal cable networks.
Its cable TV networks lost 311,000 due to cord-cutting by consumers shifting to streaming. That was lower than 389,000 losses a year ago and FactSet estimates for loss of 333,000.
The theme park unit reported flat revenue at $2.37 billion. But its core earnings fell 3.9% due to pre-opening costs for Universal Epic Universe which is scheduled to open in May.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy Leo)
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