Comcast Changes to its broadband strategy outlined on Thursday, since the company continues to release customers in view of increased competition.
The discussion came with the investors in the middle of the company's profit in the first quarter. Despite the customer losses, Comcasts exceeded the expectations of the analysts.
The comcast shares completed almost 4% on Thursday.
Here is how Comcast was carried out for the period surveyed by LSEG for the period that ended on March 31 March:
- Win each share: $ 1.09 adapted compared to 98 cents
- Revenue: 29.89 billion US dollars are expected compared to $ 29.77 billion
While domestic broadband revenue rose by 1.7% to 6.56 billion US dollars, Comcast lost a total of a total of domestic broadband customers in total, which reflected the continued pressure on the cornerstone of the cable giant. The competition has increased in recent years due to the increase in alternative internet options at home, including 5G or so -called festivals wireless.
“In this intensely competitive environment, we do not gain the market in such a way that we correspond to the strengths of our network and our connectivity,” said Comcast President Mike Cavanagh about the company's profit call.
Analysts peppered comcast executives on Thursday with questions about his broadband and mobile phone from XFinity and the way the company turns the business.
Cavanagh said that the company had identified a “separation” that, despite a strong broadband network and related products, was translated into slow growth. He found that the two main wind winds are “price transparency and predictability and the measure of simple business with us”.
During the prize in the last quarter, the comcast executives alerted investors that they would shift the company's focus on the growth of its mobile business according to continued broadband losses.
Comcasts less than 10 years old mobile business remained a bright spot in the quarter. The turnover for the device rose by around 16% to 1.12 billion US dollars and added 323,000 lines. There are now approximately 8.15 million XFINITY mobile lines.
On Thursday, CEO Brian Roberts said that the company was “clearly a few challenges, but as they heard, with a lot of passion”.
“The team has a feeling of urgency, energy and focus on solving customer pain points,” said Roberts. “While this may take a little time to go completely into history, our history of operating the operational execution would tell you that we sometimes do not move first when we get in motion, but we do it very well.”
“Increased competition”
Igor Golovniov | Lightroket | Getty pictures
On Thursday, the comcast cfo Jason Armstrong said that the company was “in an incredibly strong position to successfully make difficult decisions in certain areas, which we make in the face of the increased competition”.
Broadband bloomed as a growth engine for cable companies such as comcast when the cable television business began its decline. Comcast reported 427,000 cable TV customer losses on Thursday.
After years of consistent broadband customer growth, especially during the early Covid Pandemic Lockdown orders, when many Americans used the Internet for work and school for the house for work and school, the green orders of the competing offers began.
The most important competitive strength was to rise from a fixed wireless offers from Verizon and T-Mobile. There was the so-called superstructure of fiber internet and 5G, a fixed wireless high-speed internet offer.
In 2022, Comcast and Charter Communications each reported their first quarterly losses in broadband customer growth.
Last September, Charter presented a shift in strategy that focused on new pricing, internet speeds, an impetus to grow mobile and to make customer changes. CEO Chris Winfrey announced CNBC that the goal was to eliminate the long -term negative perception of cable companies.
When ComCast found the need to change the strategy at the beginning of this year, the managers said to pursue the leadership of Charter in these areas. ComCast recently started making changes to its mobile plans and prices and making a new setting.
The comcast cable president Dave Watson said on Thursday that new offers -such as adding a mobile line for one year -have already shown advantages at the end of the first quarter.
“It initially managed a great quarter. We roll here and expect further acceleration in the upcoming quarters,” he said.
Watson also found upgrades for services for existing customers, since “a core of our strategy innovation”.
Despite the lack of growth, sales for the broadband unit are increasing due to the average income per user or the ARPU in the industry jargon. Analysts asked whether this would suffer a hit with the shift in strategy.
“We are really trying to concentrate on the pain points in this market,” said Watson. “We can do this tactically, surgically and do not consider it a broad speech of our basis. We believe that we can still advance a healthy broadband -Arpu growth. However, these initiatives will require some investments, which in turn influences our ability to expand the EBITDA in the near future.
Greater picture
On Saturday, April 5, 2025, the guests will drive the Stardust Racers Rollercoaster in Celestial Park in the Epic Universe Topic Park in Orlando, Florida, on Saturday, April 5, 2025. Epic Universe, the attraction of 7 billion US dollars at the department for the general destination & experience department of Comcast Corp. Offer five different lands and opens on May 22nd on May 22nd on May 22nd on May 22nd.
Bloomberg | Getty pictures
For the first quarter, ComCast's net income was 12.5% to 3.38 billion US dollars or 89 cents per share compared to 3.86 billion US dollars or 97 cents per share in the same period in the previous year. Adaptation to one -time items including income tax costs and costs in connection with the value of assets, including, including, Comcast reported a profit of $ 1.09 per share.
The adapted result before interest, taxes, depreciation and amortization or EBITDA rose by almost 2% to 9.53 billion US dollars.
The company's turnover decreased slightly to $ 29.89 billion compared to $ 30.06 billion in the same period of 2024.
The turnover was made by what Comcast refers to as “growth transactions”, including mobile, streaming platform Peacock, the Business Services unit, broadband, studios and the themed parks for business services. ComCast is to work out its portfolio of cable networks, including CNBC, in a transaction that is expected to be completed this year.
The sales for the media segment, which comprises NBCuniversal, rose by 1% to $ 6.44 billion, and sales in the unit of film studios increased by 3% to $ 2.83 billion.
The media unit increased a thrust through Peacock, whereby the adapted EBITDA for the segment has increased by 21% to 1 billion US dollars that were controlled by the streaming platform. The turnover for Pfau itself rose by 16%. The quarterly loss of the streamer decreased to 215 million US dollars compared to a loss of 639 million US dollars in the previous year.
According to Street Account, Peacock had 41 million subscribers paid to the analyzes of 37.21 million for the quarter. Peacock ended the last financial year with 36 million paid customers.
Competitors including Disney And Warner Bros. Discovery Each streaming platforms have achieved profitability in the last quarters. Streamer has shifted the corridors to the advertising for advertising-supported business models and the inclusion of the password release in order to achieve profitability, since the Wall Street investors shifted the focus on metrics rather than on subscribers.
NBCuniversal's theme parks were 5% to around 1.88 billion US – weigh the overall business.
On May 22, the company is preparing for the debut of the Universal Epic Universes, which will be the first important development of the theme park in Florida for 25 years. In the publication on Thursday, Comcast called the new theme park “The most ambitious park's experience ever created”, with more than 50 attractions.
In August it will also open universal horror in Las Vegas. NBCuniversal recently also announced plans for the construction of a universal themed park and resort in Great Britain
Disclosure: ComCast has NBCUNIERSAL, the parent company of CNBC.
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