Cable TV subscribers are leaving Comcast at a faster rate, the company reported Thursday, reflecting the impact of a consumer shift from traditional TV services to online channels and streaming services.
Philadelphia-based Comcast (CMCSA) reported a loss of 125,000 total video customers in the third quarter, compared to 34,000 losses recorded by the company for the April-June period.
Despite the company posting better than Wall Street earnings and earnings, shares of Comcast fell nearly 2% to $ 36.09 in Thursday morning trading.
The stock also fell in September after a Comcast executive forecast the expected loss of third-quarter subscribers during an appearance at a financial conference by Merrill Lynch.
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Comcast and other traditional pay-TV providers have seen cable operators pull back in favor of popular, lower-cost streaming services such as Netflix and online channel packages they can view on the Internet.
Likewise, ATT on Tuesday announced losses of 134,000 pay-TV customers in the third quarter and a drop of 251,000 satellite subscribers. Comcast and ATT attributed some of the declines to the effects of blackouts and damage from recent hurricanes in Texas and Florida.
Comcast offset the decline in subscribers with a 5.1% year-over-year jump to $ 13.2 billion, in cable communications revenues mainly attributable to the increase in High speed internet, video and shopping services.
Business services revenue increased 12.6% from the third quarter of last year, a sign of an increase in the number of customers receiving offers for small and medium-sized businesses, the company said. .
For the quarter, Comcast reported that net income rose 18.5% to $ 2.65 billion, with earnings per share of 52 cents. The results beat estimates of 49 cents per share and $ 2.363 billion in net income from financial analysts polled by S&P Global Market Intelligence.
Comcast also reported revenue of $ 20.98 billion, down 1.6% year-over-year. Excluding the financial boost that the 2016 Summer Olympics in Brazil brought in the third quarter of last year, revenue grew 5.8%, Comcast said.
Follow USA TODAY reporter Kevin McCoy on Twitter: @kmccoynyc