Telecommunications giant Comcast managed to beat the Wall Street estimates in the second quarter in revenue and earnings. However, the fact that the company also failed to add internet subscribers in the same period seems to have overshadowed these accomplishments.
Comcast reported that its subscriber numbers have been steady and remained at 32.2 million subscribers as in Q1. This is the first time ever that the company didn’t add new subscribers. Also, it is only the second time that there less than 100,00 new customers joined their user network. The only previous time this happened was during the 2008 financial crisis when only 65,000 new subscribers joined in.
The investors reacted poorly after hearing the news, with Comcast’s stock dropping down almost 10% since the market opened on Thursday morning. The company’s shares closed at $43.37 on Wednesday and were trading as low as $39.16 at one point.
The company isn’t panicking in the same way the investors are when it comes to the lack of subscriber gains. According to CEO Brian Roberts, this situation is a result of a “unique and evolving macroeconomic environment” the company expects to overcome soon. Also, there is optimism that the back-to-school movement will positively influence the growth of subscribers.
Comcast wrapped up the second quarter with $30.02 billion, compared to estimates of $29.68 billion. It had adjusted earnings per share of $1.01 versus 92 cents expected.