Comcast fails to add broadband subscribers in Q2
Comcast stock is ticking down after disappointing second-quarter earnings in which the company failed to add broadband subscribers.
Video Transcript
RACHELLE AKUFFO: Triple Play is on deck, and I'm kicking us off with my pick, which is Comcast. Now, despite a beat on its top and bottom lines today, the stock taking a hit, down about 8 and 1/2% at the moment for its failure to add broadband subscribers for the first time ever. Now it stayed flat at 32.2 million, losing 30,000 just in July.
And of course, Peacock paid subscribers also flat at 13 million, after getting a 4 million boost in Q1 from the Super Bowl and Beijing Olympics. Plenty of competition in streaming and broadband, as consumers trim expenses. A bright spot, though, in parks and its studios. Those up 5.1% over the year in revenue. The stock, though, down more than 20% year to date.
SEANA SMITH: Yeah, Rachelle, the two big numbers here, broadband and Peacock, and I think that speaks to what we've been talking about a lot here when it comes to cable and streaming options. One, there's a lot of competition in streaming, and two, what the future looks like for broadband. It was the worst quarter that we've gotten from Comcast in quite some time.
MoffettNathanson was out with a note following these earnings results, saying that the broadband slowdown is a combination of encroaching saturation and sluggish new household formation. Again, we're seeing the reaction in the shares today with the stock off nearly 9%.
