Holiday movies drive quarterly revenue growth
"Wicked" amassed roughly $700 mln in global box office
Hurricanes, competition drive worse-than-expected broadband losses
Updates share move in paragraph 1, adds analyst comment in paragraph 5
By Harshita Mary Varghese
Jan 30 (Reuters) - Comcast CMCSA.O reported a steep decline in broadband subscribers for the fourth quarter on Thursday on competition from telecom firms that have been bundling 5G mobile services with internet plans, sending its shares about 11% lower.
The broadband subscriber losses overshadowed the telecom and media giant's upbeat results and the announcement of a $15 billion share buyback program.
Comcast lost 139,000 broadband customers in the quarter, higher than FactSet estimates of a 91,000 loss, as it was also hurt by Hurricanes Milton and Helene that disrupted Florida businesses during the quarter.
The company plans to introduce new pricing packages for upgraded markets in the coming months that bundle wireless and internet, Comcast president Mike Cavanagh said in a conference call post earnings.
Comcast is adopting a strategy similar to that of wireless carriers such as AT&T and Verizon, which aim to increase their market share by attracting customers with discounted premium plans that bundle 5G mobile services with high-speed internet.
"Comcast and its cable peers have a dramatic advantage in being able to offer a converged solution everywhere," MoffettNathanson analyst Craig Moffett said.
However, the company's quarterly results were strong, aided by its studio business. Its total revenue rose 2.1% to $31.92 billion, beating estimates of $31.64 billion, according to LSEG data.
Its adjusted profit of 96 cents per share also topped estimates by 10 cents.
"Wicked", a movie adaptation of the Broadway prequel to "The Wizard of Oz", was Universal Pictures' biggest grosser in the quarter. It earned roughly $700 million at the global box office and helped power a near 7% rise in Comcast's studio revenue.
Peacock's revenue rose 27.8% thanks to price hikes made last year ahead of the Olympics.
Comcast plans to unchain its main profit drivers such as studio and theme parks business from the declining cable TV unit by spinning off select NBCUniversal cable networks.
Its cable TV networks lost 311,000 users due to cord-cutting by consumers shifting to streaming.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Leroy Leo)
((HarshitaMary.Varghese@thomsonreuters.com))
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