Comcast reported second-quarter revenue and earnings that topped analyst estimates, but the cable provider didn’t add broadband customers in a quarter for the first time ever.
Comcast’s high-speed internet customers in the quarter were flat, trailing the 84,000 average analyst estimate, according to FactSet. The company’s shares fell more than 9% Thursday morning.
Comcast is seeing growing competition for high-speed broadband, its most lucrative product. For more than a decade, the cable industry has dominated the home broadband market, but wireless companies such as T-Mobile are now competing by offering 5G home internet products. T-Mobile added 560,000 broadband users in the second quarter, well above its first-quarter total of 338,000.
“Mobile substitution will eventually stabilize,” Comcast Chief Executive Officer Brian Roberts said during the company’s earnings conference call. Still, Comcast said broadband losses have continued early in the third quarter, noting a loss of about 30,000 broadband customers in July.