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Key Takeaways
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Comcast's broadband customers declined more than anticipated, sending shares plunging.
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The customer drop of 139,000 was worse than what Comcast Cable CEO Dave Watson warned would be lost last month.
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Comcast posted better-than-expected fourth-quarter profit and sales.
Shares of Comcast (CMCSA) fell to their lowest level in more than two years Thursday after the cable and media giant reported a drop in its subscriber base.
The owner of the NBC network, Peacock streaming service, and Xfinity cable system reported fourth-quarter total domestic broadband customers declined by 139,000 to 31.8 million. Of that, 131,000 were residential subscribers and 8,000 business subscribers.
Last month, Comcast Cable CEO Dave Watson warned that the firm expected to see a loss of 100,000 broadband customers.
Q4 Results Top Estimates
The news offset strong fourth-quarter results. The company posted adjusted earnings per share (EPS) of $0.96, with revenue rising 2% year-over-year to $31.92 billion. Both exceeded Visible Alpha forecasts.
Revenue for Connectivity & Platforms increased 5% to $11.5 billion, and it jumped 28% to $1.3 billion at Peacock.
CEO Brian Roberts said Comcast had "the best financial performance in our company's 60-year history with record revenue, EBITDA and EPS along with significant free cash flow."
Comcast shares sank more than 11% Thursday morning. They have lost nearly 30% their value over the last year.
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