Comcast's broadband customer losses eclipse upbeat streaming performance

By Harshita Mary Varghese

(Reuters) -Comcast said broadband losses would continue after it shed more customers than expected in the first quarter, overshadowing the upbeat performance of its streaming unit and sending shares of the media conglomerate down 6% on Thursday.

The company lost 65,000 broadband customers between January and March due to stiff competition from telecom firms such as T-Mobile and Verizon. The decline was more than the estimated loss of 49,000 customers, according to FactSet.

"We do not see this trend improving in the near term," Comcast finance chief Jason Armstrong said, adding that the churn could be elevated following the end of a federal internet subsidy program in May.

The company has been vulnerable to broadband losses as lower-income customers are eager to trade in speed for a cheaper package, and analysts have said that the end of the federal subsidy program would put more pressure on Comcast's business.

"While there is hope in the long run for Comcast as it works on network upgrades, the company can no longer be dismissive of the competitive threat from fixed wireless and the short-term impact it has on wireline broadband growth," said Jamie Lumley, analyst at Third Bridge.

Still, there were some positives for Comcast in the results.

Its Peacock streaming service added 3 million subscribers in the first quarter, outpacing estimates of 2.32 million by Visible Alpha and taking the total to 34 million. Higher investments boosted the numbers for Comcast, which is gearing up to compete better with Netflix and Disney+.

Revenue at its streaming service surged about 54% from a year earlier, helping Comcast report a total revenue of $30.06 billion, above estimates of $29.81 billion, according to LSEG data.

Its theme parks business also continued to reap the gains from launches, including Super Nintendo World in Japan.

(Reporting by Harshita Mary Varghese; Editing by Milla Nissi and Shinjini Ganguli)