Comcast to Lose Over 100,000 Broadband Subscribers in Q4 as Competition Intensifies
Comcast CEO Dave Watson warned investors that the company expects to lose over 100,000 broadband subscribers in the fourth quarter, citing a competitive market. The news sent shares plummeting nearly 10% on Monday. The company’s cable broadband growth has been in a slump, with executives attributing the decline to a slowdown in home purchases and increased competition from wireless providers like Verizon and T-Mobile.
Watson noted that the competition has been intense, particularly among price-conscious consumers. The company lost just under 100,000 customers in each of the first two quarters of the year, and expects the trend to continue in the fourth quarter. However, the company’s higher-end internet packages have remained stable.
The warning comes after Comcast’s third-quarter results, which showed a decline in domestic broadband net losses of 87,000 subscribers. However, excluding losses related to the end of the government’s Affordable Connectivity Program, the company reported a gain of 9,000 customers.
Watson attributed the third-quarter improvement to seasonality, with the return to school often leading to increased broadband demand, as well as marketing efforts by NBCUniversal promoting the Summer Olympics. The company had nearly 32 million domestic broadband customers as of September 30.