Comcast stock fell after its chief financial officer signaled a third-quarter slowdown in broadband subscriber growth after new adds were being a bright spot during the shift to work-from-home amid the coronavirus pandemic.
“What we are seeing in the most recent past, tail end of August, is a little bit of slowdown in the net adds in the cable business,” CFO Mike Cavanagh said at a Bank of America investor conference early Tuesday.
Comcast added a record 633,000 high-speed internet customers in the third quarter of 2020. It added 379,000 in the third quarter of 2019, before the Covid-19 outbreak, the most in the September quarter in 10 years up to that point.
Cavanagh said he expects Comcast’s third quarter of 2021 to be more in line with historical averages for that period. That means it will fall well short of 2020 and below that of 2019.
Comcast Stock: Broadband-Wireless Bundle Working
In the June quarter, Comcast added 354,000 broadband customers, topping expectations of 270,000. Comcast lost 399,000 video subscribers versus 477,000 in the year-earlier period.
Comcast’s wireless business added a record 280,000 subscriber lines.
About 6% of broadband customers now also buy wireless phone services. Comcast aims to curb customer disconnects by bundling broadband and wireless services.
CMCSA stock has a flat base entry point of 59.80.
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