Comcast Corporation (NASDAQ:CMCSA, ETR:CTP2) reported an earnings beat for the first quarter but its shares tumbled as subscriber loss concerns raised doubts about the resilience of its core business lines.
The company lost 199,000 broadband customers during Q1 amid rising competition from alternative home internet providers.
Comcast also lost 427,000 cable TV subscribers, which contributed to a decline in domestic advertising revenue of 7% to $1.9 billion.
Earnings per share for the quarter were $1.09, beating the forecast of $0.99 by about 10%.
Revenue of $29.89 billion narrowly topped estimates of $29.76 billion.
“We had strong financial results in the first quarter, growing adjusted EPS mid-single digits and generating $5.4 billion of free cash flow while investing in our six growth businesses and returning $3.2 billion to shareholders," Comcast CEO Brian Roberts said in a statement.
“With our significant free cash flow generation, disciplined approach to capital allocation and the strength of our diversified businesses, I am confident that we are well-positioned to navigate an evolving environment and capture future opportunities."
Shares of Comcast fell 4.8% to about $33 on Thursday afternoon following the release of its Q1 earnings report.