Comcast stock drops as company fails to add first-time Internet users

Comcast stock drops as company fails to add first-time Internet users
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Comcast CEO Brian Roberts speaks at an event.
expand / Comcast CEO Brian Roberts at an event in Beijing on October 17, 2019.

Comcast is the largest Internet provider in the US, with over 29.8 million residential broadband customers, but the company’s long streak of adding Internet subscribers every quarter is finally over.

Q2 2022 earnings announced todayComcast said it had 29,826,000 residential broadband customers, down 10,000. since Q1 2022 and 2,337,000 commercial broadband customers, 10,000 gains. The total number of 32,163,000 residential and business Internet customers remained unchanged.

Comcast CEO Brian Roberts said the company’s cable division is experiencing “a unique and evolving macroeconomic environment that is temporarily putting pressure on the volume of our new customer connections.” Comcast also lost cable TV and VoIP phone customers this quarter, but added wireless phone subscribers.

Comcast managed to increase quarterly broadband revenue by 6.8 percent compared to the second quarter of 2021 to $6.1 billion, as Comcast has more customers than a year ago despite higher average prices and the decline in the last three months.

Despite gains in the NASDAQ, Dow Jones and S&P 500, Comcast’s stock price is down more than 9 percent in today’s trading; It has dropped over 32 percent in the last 12 months.

Zero broadband growth is a first for Comcast

The Wall Street Journal reported the first quarter that Comcast failed to gain broadband subscribers. Wrote. “A review of the company’s quarterly filings shows that Comcast has added at least 100,000 net new broadband subscribers every quarter for the past 20 years. It covers the entire period since Comcast’s November 2002 merger with AT&T Broadband.

While competition from fiber and wireless services was cited as a cause of cable’s stagnation, it was inevitable that Comcast would eventually reach limits in customer growth. After years of rapid customer growth, Comcast has probably registered almost anyone who wants its service and lives in a home within Comcast’s network.

Comcast in many parts of the USA, only valid option for fast home Internet service. There are also people who want to get cable Internet in areas and situations where Comcast thinks it’s not profitable enough to build. Comcast refuses to bind specific address unless the landlord pays tens of thousands of dollars up front.

comcast reduced capital expenditure for the cable division In 2019, less money was spent on network extensions and improvements were made in the “line extensions” and “scalable infrastructure” categories. But this spending 2020 increased in 2021and the first six months of 2022.

From January to June this year, Comcast said its cable segment “capital spending rose 2.5 percent to $3.1 billion, primarily reflecting increased investment in line extensions, scalable infrastructure and support capital, partially offset by reduced investment in customer facility equipment.” told.

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