Comcast stock (NASDAQ:CMCSA) is down (-37%) for the year and testing historic lows. Despite the cord-cutting trend hurting its heritage cable video tv business, which will lose (-521,000) users in Q2 2022, the Company is still profitable.
During the quarter, it gained 317,000 wireless lines. Its cable division had the highest adjusted EBITDA margin on record. It is a premier broadband provider with a portfolio of high-quality content brands such as NBC, Universal, Peacock, Telemundo, and Sky Studios. The Company has 57 million clients in the United States and Europe and is growing at a modest pace.
Comcast Broadband Barrier
Comcast’s internet broadband presence in the United States covers 51% of homes through Xfinity, Comcast Business, and Sky Brands in Europe. With roughly 57 million consumers on its streaming services, it has a very broad moat, allowing it to moderate the cord-cutting trend. NBC, Universal, Sky Studios, Peacock, and Telemundo are among its media brands. It has also entered the wireless market, adding 317,000 subscribers for the highest second quarter performance on record. Residential broadband wireless penetration increased to 7.9%. Comcast increased residential subscribers by 147,000 and corporate customers by 19% in the first six months of 2022. Total internet consumers increased by 262,000, but total video customers decreased by (-1 million), and total phone customers decreased by (-262,000). Rumors circulated that it planned to acquire Roku (NASDAQ:ROKU) in order to obtain access to its 60 million+ client base. The rumor, however, never came to fulfillment.
Comcast Stock is still making a profit.
Comcast reported its fiscal second-quarter 2022 earnings for the period ending June 2022 on July 28, 2022. The business revealed earnings per share (EPS) of $1.01 excluding non-recurring items, exceeding average analyst projections of $0.92 by $0.09. Revenues increased 5.1% year on year (YoY) to $30.02 billion, above expert expectations of $29.72 billion. Total customer ties in cable communications increased by 1.7% to 34.4 million, while broadband users increased by 2.5% to 32.2 million. The forecast for Comcast stock (NASDAQ:CMCSA) looks promising.
The Rise of Streaming and the Decline of Cable TV
While Comcast is losing a lot of cable TV (video) subscribers, they aren’t necessarily losing them totally. They’re merely moving. The majority of ex-cable TV consumers are cutting the cord and maintaining or expanding their internet broadband connections. What Comcast loses in cable video TV, they make up for in internet and streaming, as well as targeted advertising income. It’s a question of adaptation, and Comcast stock (NASDAQ:CMCSA) seems to be doing well thus far. Comcast owns a portion of Hulu, and reports circulate that Disney wants to buy out Comcast’s interest in order to merge its Disney+ and Hulu platforms into a single streaming package to compete with streaming leader Netflix (NASDAQ: NFLX).
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Author Okoro Chinedu 
