Comcast’s first quarter results were shaped by persistent challenges in its domestic broadband business and a highly competitive telecommunications landscape. Management cited increased churn and muted customer growth, particularly in broadband, as key factors holding back top-line momentum. Despite this, the company saw healthy broadband average revenue per user (ARPU) growth and highlighted notable strength in its wireless and business services segments. CFO Jason Armstrong explained, “We’re addressing current customer pain points and investing in go-to-market with a focus on pricing transparency and simplicity.”
Is now the time to buy CMCSA? Find out in our full research report (it’s free).
Comcast (CMCSA) Q1 CY2025 Highlights:
- Revenue: $29.89 billion vs analyst estimates of $29.8 billion (flat year on year, in line)
- Adjusted EPS: $1.09 vs analyst estimates of $0.99 (9.9% beat)
- Adjusted EBITDA: $9.53 billion vs analyst estimates of $9.13 billion (31.9% margin, 4.4% beat)
- Operating Margin: 18.9%, in line with the same quarter last year
- Domestic Broadband Customers: 31.64 million, down 545,000 year on year
- Market Capitalization: $128.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Comcast’s Q1 Earnings Call
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Craig Moffett (Oppenheimer) asked about the impact of declining international travel on theme parks. President Michael Cavanagh responded that advanced bookings remain strong, especially for Epic Universe, and noted that domestic demand is the primary driver for Orlando parks.
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Jonathan Chaplin (New Street Research) inquired about the benefits of network upgrades in project Genesys markets. COO David Watson highlighted robust bandwidth consumption and speed improvements, but emphasized that recent efforts are focused on addressing pricing pain points to reduce churn rather than any immediate churn benefits from Genesys upgrades.
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Michael Ng (Goldman Sachs) questioned the sustainability of broadband ARPU growth given new five-year price lock initiatives. Watson stated that while these changes require near-term investment, they are expected to deliver more satisfied, lower-churn customers with higher lifetime value over time.
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Michael Rollins (Citibank) probed whether broadband losses were due to category maturity or market share shifts. Watson noted that competitive intensity, especially from fiber and fixed wireless, remains the primary challenge, but mobile substitution is also contributing to churn.
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Benjamin Swinburne (Morgan Stanley) asked about the trajectory of Peacock’s profitability and the impact of new investments on EBITDA. Cavanagh and Armstrong pointed to improving monetization and subscriber growth for Peacock, while reaffirming that near-term margin pressure is expected as Comcast pivots its go-to-market strategy.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will watch (1) the pace at which wireless offerings drive higher customer attachment and reduce churn in the broadband base, (2) execution and results from the Epic Universe theme park launch in Orlando, and (3) continued improvement in Peacock’s monetization and operating losses. Shifts in the competitive landscape, especially regarding fiber and fixed wireless, will also be critical to monitor.
Comcast currently trades at $34.49, in line with $34.40 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).
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