Sep. 9 at 8:12 PM
Comcast shares fell Wednesday after management highlighted persistent challenges in its broadband business at Goldman Sachs’ Communacopia + Technology Conference. CFO Jason Armstrong said fiber broadband pricing has become “irrational” and warned that the company does not expect an improvement in broadband subscriber losses during the third quarter. Despite the pressure, Comcast still expects a moderate improvement in its Q3 EBITDA trajectory.
The company faces intense competition from fiber providers offering aggressive pricing and gigabit speeds for as little as
$30-
$40 per month. KeyBanc analyst Brandon Nispel warned that accelerating subscriber losses could force Comcast to reduce average revenue per user further to stabilize its customer base. Consensus expects 89,000 residential broadband net losses in Q3, compared with 91,000 a year earlier, while KeyBanc forecasts a significantly worse decline of 125,000 subscribers.
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