Shares of Comcast tumbled Monday following their announcement of likely broadband subscriber losses exceeding 100,000 in the fourth quarter. During the year's first half, the company lost nearly 100,000 broadband customers each quarter, revealed Comcast Cable Chief Executive David Watson at a UBS conference, as detailed in a FactSet transcript.
Improvements were noted in the three-month period ending September 30 due to the impact of the Olympics and a 'competitor strike.' However, trends for December echo those from the first half of the year, leading to a 9.6% decline in shares before market close. Recent hurricanes are expected to account for about 10,000 of the broadband losses this quarter, slightly affecting average revenue per user.
'We could be looking at a broadband subscriber loss in the fourth quarter of just over 100,000,' Watson stated. The competition in the market remains fierce, particularly in the price-sensitive segment. Additionally, Comcast has secured long-term agreements to provide Warner Bros Discovery content to Xfinity subscribers in the US and Sky customers in the UK and Ireland.
The companies announced Monday that Warner Bros Discovery channels like TNT, CNN, TBS, Food Network, and Discovery will still be accessible to Xfinity TV customers. The agreement also maintains HBO carriage while expanding Comcast's ability to package ad-supported versions of Max and Discovery+ within its streaming bundles.
Warner Bros Discovery’s television and films will become available to Sky UK and NOW clients through a newly established partnership in the region. 'We extended our partnership with Warner Bros. Discovery to distribute its networks and expanded our ability to deliver its premium streaming content in a way that provides more choice and flexibility to our customers as the video ecosystem evolves,' stated Greg Rigdon, Comcast’s president of content acquisition.
This partnership highlights 'the value and appeal of our linear portfolio' for US audiences, while also referencing Sky UK as an 'ideal partner' as Max prepares for its launch in those countries in early 2026, according to Warner Bros Chief Revenue and Strategy Officer Bruce Campbell. In November, Comcast announced plans to spin off several cable networks, including USA Network, CNBC, MSNBC, Oxygen, E!, SYFY, and Golf Channel, into a new publicly traded entity.
Comcast will maintain control of NBC entertainment, sports, news, and Bravo, all of which support its Peacock streaming service, along with its Spanish-language channel, Telemundo, under the NBCUniversal umbrella. This transaction is anticipated to finalize in the latter half of 2025..