Comcast: Broadband subs hurt by fiber-optic rivals, economy

Comcast: Broadband subs hurt by fiber-optic rivals, economy

Summary: Comcast added 118,000 broadband Internet customers in the second quarter, a tally that was lower than some expectations. Executives said Comcast was seeing tougher competition from fiber-optic rivals Verizon and AT&T and economic doldrums.

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Comcast added 118,000 broadband Internet customers in the second quarter, a tally that was lower than some expectations. Executives said Comcast was seeing tougher competition from fiber-optic rivals Verizon and AT&T and economic doldrums.

Speaking on a conference call, Comcast CFO Michael Angelakis said competition picked up from Verizon's FiOS as well as AT&T U-verse services. Comcast operating chief Steve Burke also noted that Comcast had aggressive pricing a year ago and some price sensitive customers would naturally drop service as those promotions went away. Indeed, Verizon added 196,000 net FiOS Internet subscribers in the second quarter. AT&T added 209,000 U-verse TV subscribers in its second quarter and said the Internet attach rate topped 90 percent, or about 188,000 net adds.

Analysts were expecting Comcast to add roughly 180,000 Internet subscribers, according to Deutsche Bank. Miller Tabak expected 195,000 Internet broadband subscribers for Comcast. However, analysts were heartened that Comcast was focusing on profitable growth instead of just volume.

The Internet broadband additions were one of the few worry spots on Comcast's quarter (statement). Comcast, which aims to close the acquisition of NBC Universal by the end of 2010, reported second quarter revenue of $9.52 billion, up 6.1 percent from a year ago. Earnings were 31 cents a share, a penny shy of Wall Street estimates. However, expenses related to the NBC Universal acquisition cut about 2 cents a share from Comcast's earnings. Excluding those expenses, Comcast had better-than-expected results.

By the numbers:

Topics: Telcos, Broadband, Browser, Networking

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4 comments
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  • RE: Comcast: Broadband subs hurt by fiber-optic rivals, economy

    Get rid of the data caps, problem solved.
    eprisencc
  • RE: Comcast: Broadband subs hurt by fiber-optic rivals, economy

    I will be moving back to Tallahassee, FL (Tallahassee Community College has a Game Design and Logic program while Valencia Community College does not) next week from Orlando and will be switching to Comcast where I can sign up for the IPv6 trial.
    Grayson Peddie
  • RE: Comcast: Broadband subs hurt by fiber-optic rivals, economy

    Wow. you really don't comprehend what happened this quarter. Verizon lost 168,000 DSL customers and AT&T lost 347,000 non-U-Verse DSL customers. Some of those DSL losses did convert to FiOS and U-Verse Internet service, but on a net basis, Verizon only gained 28,000 broadband customers and AT&T LOST 92,000 broadband customers. The two telcos combined lost a total of 64K broadband customers. The effective pickup for Comcast was therefore 182,000 customers.
    diogenes.
  • RE: Comcast: Broadband subs hurt by fiber-optic rivals, economy

    Comcast is way overpriced, video on demand? They mean 300,000 shows that I think are crappy, and wouldn't get paid to watch them. How about letting me tell you what I want to watch? I might pay for that kind of service, ohh wait, they have it, it's called Netflix, Hulu, Tv.com. And for the record, I cut the cable cord over a year ago, and my comcast email account is still active, and I can watch Xfinity on their website, opps.
    trust2112@...