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Comcast Stock Sinks as Executive Warns of Broadband Subscriber Losses
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Comcast ( CMCSA ) shares tumbled roughly 9% intraday Monday after an executive at the conglomerate warned that it expects to lose 100,000 broadband subscribers in the current quarter.
Comcast Cable CEO Dave Watson told the UBS Global Media & Communications Conference in New York that while the company anticipates being in its estimated average revenue per user (ARPU) range of 3% to 4%, "we'll be at the lower end of that range," according to a transcript provided by AlphaSense.
Watson explained that about 10,000 of the subscriber losses could be attributed to the impact of Hurricanes Helen and Milton. He added that the ARPU softness was caused by rebates given because of storms, along with lower-end activity related to the timing of the Affordable Connectivity Program.
Watson pointed out that Comcast faced a "competitively intense" environment. He said that was especially true in the "more price-conscious end of the marketplace." Watson noted that competitive intensity has been pretty consistent throughout the year, and continued in the fourth quarter.
Shares of Comcast had been essentially flat on the year until Monday's declines.
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