Comcast, Taking Q1 Punches from Pandemic, Expects Worse in Q2
The COVID-19 pandemic began hurting Comcast business operations in Q1, but bigger effects are expected in Q2, the company said Thursday, announcing Q1 results. Cable and broadcast advertising, already down, will be weaker in Q2 due to canceled sports programming…
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and a weak economy, said Chief Financial Officer Mike Cavanagh. Film revenue will be down heavily in Q2 and Q3, as tentpoles like Fast and Furious and Minions sequels move to 2021, he said. Residential broadband and enterprise trends are better than feared, New Street Research analyst Jonathan Chaplin wrote investors. Pivotal Research's Jeffrey Wlodarczak said 2020 is "a wash [with] a return to relative normalcy for cable in ’21." He said the cable business should have slower growth this year and "a nice rebound in '21 while NBC and Sky will have an ugly ’20 [and] return to normalcy by ’22." For the quarter, Comcast revenue was $26.6 billion, down 0.9%. Filmed entertainment revenue was down 22.5%. Comcast said since March 1, upstream traffic has grown 33% and wireless data use over Wi-Fi is up 40%. It said 95% of its call center employees are working from home. Comcast ended Q1 with 19.9 million residential video subscribers, down 950,000 year over year; 26.9 million residential broadband customers, up 1.4 million; and 9.8 million residential voice customers, down 250,000. It has 2.27 million wireless subscribers, up 862,000.