Comcast reports “best broadband results” for quarter as revenues slide
Comcast has reported the “best broadband results in [the] company’s history” during Q3, however the firm saw a decline across most revenues.
The firm added a quarterly record of 633,000 new high-speed internet customers and 556,000 total net new customer relationships – another record – which it has attributed to its platform and strategic focus on broadband, aggregation and streaming.
Commenting on the results, chairman and CEO Brian L. Roberts (pictured) said Comcast was “executing at the highest level”.
“We are nearly eight months into this pandemic, and despite many harsh realities, I couldn’t be more pleased and proud of how our team has worked together across the company to find safe and creative solutions to successfully operate in this environment,” Roberts said.
“We are executing at the highest level; and perhaps, most importantly, accelerating innovation, which will drive long-term future growth. This third quarter we delivered the best broadband results in our company’s history. At the same time, we’re growing our entertainment platforms with the addition of Flex, which has a significant positive impact on broadband churn and customer lifetime value. Our integrated strategy is also driving results in streaming with nearly 22 million sign-ups for Peacock to date, and we are exceeding our expectations on all engagement metrics in only a few months,” he continued.
However, revenue for the third quarter decreased 4.8% to US$25.5 billion. Net income attributable to Comcast decreased 37.2% to $2 billion, while adjusted net income decreased 18.2% to $3.0 billion. Adjusted EBITDA decreased 11.3% to $7.6 billion.
For the nine months ended September 30, 2020, revenue decreased 5.8% to $75.9 billion compared to 2019. Net income attributable to Comcast decreased 27.7% to $7.2 billion. Adjusted net income decreased 12.3% to $9.4 billion. Adjusted EBITDA decreased 8.5% to $23.6 billion.
Earnings per Share (EPS) for the third quarter of 2020 was $0.44, a decrease of 37.1% compared to the third quarter of 2019. Adjusted EPS decreased 17.7% to $0.65.
In more positive news, Sky customer trends improved, including net additions in the UK. Premier League viewership reached record levels on Sky Sports, including the highest average season viewership on record for the 2019/20 season and the highest daily UK viewership on record for the 2020/21 season to date.
Roberts said: “Sky continues to add customer relationships at higher prices while reducing churn to all-time lows in our core UK business.
“Going forward, and as we emerge from the pandemic, we believe we are extremely well positioned to provide seamless and integrated experiences for our customers and to deliver superior long-term growth and returns for our shareholders,” he added.