Comcast Q1 Shows Slower Declines in Both Video and Broadband
Comcast lost 322,000 subscribers from its legacy cable TV business in the first quarter ended March 31, an improvement over the 427,000 subscribers lost in the same period last year. The segment, which includes Xfinity TV, ended the quarter with 10.95 million subscribers, down from 12.09 million a year prior. The company also narrowed its broadband subscriber losses to 65,000 from 183,000 a year ago.
Key Takeaways
- Lost 322,000 legacy video subscribers in Q1, ending the quarter with 10.95 million.
- The rate of video subscriber loss was an improvement over the 427,000 lost in the same period last year.
- Broadband subscriber losses also narrowed, dropping to 65,000 from 183,000 year-over-year.
- The company ended the quarter with 28.7 million domestic broadband subscribers, down from 29.2 million a year prior.
Why It Matters
Comcast is stemming the bleeding in its two foundational businesses. The rate of customer departure has decelerated year-over-year, with video losses improving by over 100,000 and broadband losses by nearly 120,000. This doesn't represent a reversal of cord-cutting, as the total subscriber base for both services is still down from a year ago. It indicates more effective management of the decline, which co-CEOs attribute to 'simpler, more transparent offers.' The key metric for Q2 will be whether broadband subscriptions can return to positive growth, not just a smaller loss.
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