Comcast shares plunge as ‘Wicked' success offset by big subscriber losses

Core Viewpoint - Comcast experienced a significant decline in broadband subscribers due to competition from telecom firms bundling 5G mobile services with internet plans, leading to an 11% drop in its shares despite positive overall financial results and a $15 billion share buyback announcement [1]. Subscriber Losses - Comcast lost 139,000 broadband customers in the fourth quarter, exceeding FactSet's estimate of a 91,000 loss, with additional impacts from Hurricanes Milton and Helene disrupting Florida businesses [2][3]. Revenue and Financial Performance - Total revenue for Comcast rose by 2.1% to $31.92 billion, surpassing estimates of $31.64 billion, while adjusted profit was 96 cents per share, exceeding estimates by 10 cents [5]. Strategic Initiatives - The company plans to introduce new pricing packages that bundle wireless and internet services in upgraded markets, adopting a strategy similar to that of wireless carriers like AT&T and Verizon [3][4]. - Comcast aims to unchain its main profit drivers, such as the studio and theme parks business, from the declining cable TV unit by spinning off select NBCUniversal cable networks [7]. Studio Performance - The film "Wicked," a movie adaptation of the Broadway prequel to "The Wizard of Oz," was Universal Pictures' biggest grosser in the quarter, earning approximately $700 million globally and contributing to a nearly 7% rise in Comcast's studio revenue [6][7]. - Peacock's revenue increased by 27.8% due to price hikes implemented last year ahead of the Olympics [7].