Comcast during the first quarter added fewer net wireless subscribers to its Xfinity Mobile business compared to a year ago, but improved wireless-related losses.
In the most recent quarter Comcast added 170,000 net wireless subscribers, down 14 percent year over year. Comcast launched its MVNO service (which leans on Verizon’s network) in May 2017 and now has about 1.4 million subscribers.
BTIG analyst Walter Piecyk indicated the growth isn’t at a level that should concern the wireless industry, noting in a Thursday post that Comcast’s reported Xfinity Mobile quarterly subscriber net additions is well below the 325,000 worry benchmark the firm set last year.
“Cable is simply not been a disruptive impact to the industry, as was initially feared,” Piecyk wrote. “Meanwhile, AT&T has substantially reduced its post-paid subscriber losses over that period and AT&T and Verizon both returned to wireless service revenue growth for the first time since 2014.”
Comcast said wireless revenue for the quarter was up 21.4 percent, with new customer lines being partially offset by lower device sales as more customers opt to bring their own device.
Still, Comcast was able to improve losses related to its wireless business, reporting losses of $103 million in the first quarter compared to $189 million a year ago.
“We estimate Comcast has burned $1.8 billion cumulatively in their wireless business for 1.4 million subscribers,” Piecyk wrote. “That works out to $1,275 per subscriber.”
Check out more of Comcast’s first-quarter results here.