Comcast, a major player in the entertainment industry, surpassed analyst predictions for both revenue and profit in the first quarter of the financial year. However, despite raking in a revenue of $30.06 billion and a net income of $3.86 billion, or earnings per share of 97 cents, the company's shares took a hit as a result of dwindling numbers in broadband and cable subscribers.
During the same quarter, Comcast reported a notable surge in subscriber growth for its mobile service division, with an addition of 289,000 wireless lines. Concurrently, the number of cable and broadband subscribers slipped by 487,000 and 65,000 respectively. The loss of cable and broadband subscribers is not a new ordeal for the entertainment conglomerate and mirrors trends in previous quarters.
The tightening competition in the digital space is a contributing factor to these challenges. Comcast is contending with other major companies in the field such as Verizon, T-Mobile and AT&T, which are also scheduled to report their earnings this week.
Notwithstanding the aforementioned setbacks, the company's streaming service, Peacock, witnessed considerate growth. The platform reached 34 million paid subscribers in the quarter, marking a 55% increase from last year and generating over $1 billion for the second consecutive quarter. The service has yet to turn a profit, however, with Comcast reporting an adjusted EBITDA loss of $639 million.
Reflecting on the performance, Comcast CEO, Brian Roberts praised the company's ability to consistently perform at peak levels and being in a position for long-term growth. Following the release of the earnings report, Comcast's shares experienced a brief pre-market surge. However, they quickly fell by over 5% as of 10 a.m. ET, Thursday.