D.C. Memo: Comcast Guides to 100K Broadband Losses in Q4; Stock Takes Hit On News

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Broadband: Comcast expects to lose about 100,000 broadband subscribers in the fourth quarter – another indication that the country’s No. 1 Internet Service Provider is still feeling competitive pressure from wireless and fiber broadband rivals. “Our competition remains competitively intense. That has not changed. It has been pretty consistent throughout the year – in particular in the more price-conscious end of the marketplace,” said Dave Watson, president and CEO of Comcast Cable, speaking yesterday at the UBS Global Media and Communications conference in New York. (A replay of Watson’s appearance is here.) Comcast’s stock was down 9.5% yesterday in response to Watson’s comments. In the third quarter, Comcast dropped 87,000 broadband customers — an improvement from the 120,000 lost in the second quarter but much more than the 18,000 decline during the same period in 2023. Comcast said that it would have recorded a net increase of 9,000 broadband customers in the third quarter had the FCC’s Affordable Connectivity Program (ACP) not expired in May. Watson’s comments appeared to counter the view of some on Wall Street that because Fixed Wireless Access leaders T-Mobile and Verizon were seeing a deceleration in net adds, cable ISPs would not see a bump in sub losses. Comcast — which made news last month with the plan to spin off a slate of major cable networks — CNBC, USA, CNBC, SyFy, E!, Oxygen, and Golf Channel — ended the third quarter with 31.9 million broadband subs. Watson’s comments also hurt the stocks of other cable ISPs. Charter Communications shares closed down 9.2% and Cable One was down 4.95%.