Comcast share drain as the peacock does not add more subscribers, broadband loss drawers

On By Littum

Comcast (CMCSA) stock fell over 10% Thursday morning After reported after the business A greater than expected fall in broadband customers in the fourth quarter and could not add more subscribers to its peacock streaming service.

The company reported a decrease of 131,000 broadband users, more than 100,000 TAB Comcast Cable CEO Dave Watson estimated in December. The escalating losses reflect competitive challenges as mobile providers such as Verizon (VZ), T-Mobile (TMUs) and AT&T (T) have been able to attract consumers with lower income with more flexible offers.

The company still said it remains obliged to its connecting business and advertised strategic changes to “games to (its) strengths” as Internet traffic is quickly expanded in the middle of the streaming boom.

“Wireless is a meaningful differentiate as our converged offers give great savings to the consumer,” Comcast President Michael Cavanagh said of the earnings peel. “And then you will see us move our strategy to pack mobile with more of our higher -level broadband products, both for new and many of our existing customers.”

Comcast’s broadband matches come as the company also reported a decrease of 311,000 TV consumers as more consumers cut the cable line in favor of cheaper streaming services. The company recently advertised A new sports and news -TV package that includes peacock at a cost of $ 70 a month. To note it’s less than virtual competitor YouTube TV (Googl, Goog).

In the earnings peel, the company continued to emphasize the importance of peacock, although it did not add or lost any subscribers in the quarter, with the total paying users back of 36 million.

Comcast improved profitability and reported an adjusted EBITDA loss of $ 372 million compared to a loss of $ 825 million in the same period last year. Losses are expected to improve during the year, according to management.

And as Moffettnathanson analyst Craig Moffett pointed out: “There was no fall in subscribers after the end of the Summer Olympics. It’s a win.”

Still, others on Wall Street have been careful with the streamer’s uneven path compared to other streaming giants.

“Peacock finds out that it is expensive to compete in streaming wars and winnings will be more difficult to come with,” wrote Ross Benes, senior analyst at Emarketer, in response to the report. “As wiring cuts continue unabated, the decision to sell TV networks continues, but the buyer prospects for these assets will be limited.”