Summary: Comcast reported a larger-than-expected decline in broadband customers in the fourth quarter, citing intensified competition from aggressive fiber provider promotions and the arrival of cheaper fixed-wireless internet offerings. The company is pausing price increases for the year and adjusting product bundles and packaging to better compete. Despite the subscriber loss, Comcast delivered quarter results in line with revenue expectations, benefited from a strong theme park performance, and saw streaming subscriber gains that were offset by higher content-related losses.
Comcast disclosed that it lost 181,000 broadband customers in the fourth quarter. That decline exceeded an estimated 173,780-user drop compiled by Factset. Industry dynamics reflected that high-speed fiber providers have been running promotional campaigns while lower-priced fixed-wireless access internet services have begun to win consumers, increasing the competitive intensity in a U.S. broadband market long dominated by Comcast and Charter Communications.
To address the shifting environment, Comcast said it will not raise prices this year and is reworking its package structure and bundling strategy in an effort to be more competitive. Analysts cited in the company’s reporting do not expect meaningful broadband customer growth for Comcast until 2027.
Financials and operating highlights
For the three months ended in December, Comcast reported total revenue of $32.31 billion, effectively matching estimates of $32.35 billion compiled by LSEG. The company’s theme parks business made a notable contribution, driven in part by Epic Universe in Orlando, with that unit recording revenue growth of 21.9% for the quarter.
Comcast’s Peacock streaming service added 3 million paid subscribers in the quarter, a recovery after muted growth earlier in the prior year. The company attributed subscriber momentum in part to the addition of National Basketball Association games and a new exclusive National Football League deal. However, the costs tied to those sports rights and related deals expanded Peacock’s losses to $552 million for the period.
At the same time, studio revenue dropped 7.4% to $3.03 billion. The company noted that the sequel film "Wicked: For Good" did not reach the box office performance of 2024’s "Wicked." The first film recorded global box office receipts of over $758 million, while last year’s sequel brought in $527 million, figures reported via Box Office Mojo.
Free cash flow for the quarter was $4.37 billion, compared with analysts’ expectations of $2.23 billion. Adjusted earnings per share came in at $0.84, ahead of the $0.75 consensus estimate.
Key points
- Broadband: Comcast lost 181,000 broadband customers in Q4, more than Factset's estimate of a 173,780 decline, as fiber promotions and fixed-wireless entrants intensify competition.
- Financials: Total revenue was $32.31 billion for the quarter, roughly in line with LSEG estimates; free cash flow was $4.37 billion, and adjusted EPS was $0.84, exceeding the $0.75 expectation.
- Streaming and media: Peacock added 3 million paid subscribers but saw losses widen to $552 million due to sports rights; studio revenue fell 7.4% to $3.03 billion amid weaker sequel box office returns.
Risks and uncertainties
- Subscriber trends: Continued promotional activity from fiber providers and expansion of fixed-wireless access could sustain broadband churn and pressure Comcast’s core connectivity revenue - primarily affecting the broadband and telecom sectors.
- Content costs: Investment in sports rights and other content widened losses at Peacock, posing a risk to the streaming unit’s path to profitability - a concern for media and streaming markets.
- Growth outlook: Analysts cited do not foresee meaningful customer growth until 2027, indicating prolonged stagnation risk for Comcast’s broadband customer base and related revenue streams.