On Thursday, Comcast reported mixed results in its fourth-quarter earnings, prompting a negative reaction from investors. The global media and communications giant beat its projected earnings, partly due to a robust quarter from its studio division with winning titles that included THE WILD ROBOT and WICKED.
However, these successes were offset by an underperformance from Comcast’s streaming and cable division. CEO Mike Cavanaugh acknowledged the losses from cable were “disappointing and worse than what we indicated in early December,” driving down Comcast’s share price by 11% in the day after the announcement.
On the other hand, there were several positive signs in the report as well. Comcast’s revenue increased in several key units, including Xfinity mobile, Universal Film Studios, and Peacock streaming. However, investors appeared to be more focused on the decline of Comcast’s traditional cable business.
The company’s count of cable subscribers dropped by 300,000 in the period, which was larger than expected. Given the contribution of cable to Comcast’s overall business, rumors have begun to circulate that Comcast is considering a move to acquire its cable competitor Charter to counteract this decline while it pushes to expand its streaming business to compensate.