Comcast Stock Sinks as Executive Warns of Broadband Subscriber Losses | Global News Avenue

Comcast (CMCSA) In mid-day trading on Monday, a senior executive of the group warned that it expected to lose 100,000 broadband users this quarter, sending the stock price down about 9%.

Comcast Cable CEO Dave Watson told the UBS Global Media & Communications Conference in New York that while the company expects to Average revenue per user (ARPU) According to the transcript provided by AlphaSense, this number is between 3% and 4%, and “we will be at the lower end of that range.”

Watson explained that the loss of approximately 10,000 users was likely due to the impact of hurricanes Helen and Milton. He added that the ARPU weakness was due to rebates from the storm, as well as lower-end activity related to the timing of the Affordable Connectivity Plan.

Watson noted that Comcast faces a “highly competitive” environment. This is especially true at the “more price-sensitive end of the market,” he said. Watson noted that competitive intensity has been fairly steady throughout the year and continued in the fourth quarter.

Comcast shares had been essentially flat this year until Monday’s decline.