Comcast has unveiled its Q1 2018 earnings report today and it shows a slow but steady growth for its Xfinity Mobile MVNO service.
In its report, the company said that Xfinity Mobile was able to add 196,000 new subscribers during the first quarter of the year. This brings its total number of customers to 577,000. Surprisingly, these numbers do not stray too far from the expectations of analysts from Wall Street. Most analysts were expecting Comcast to have new subscribers of around 150,000 in Q1. Even MoffettNathanson analysts predicted the wireless service would have 187,000 new customers.
Despite this, Comcast still reported a loss of $ 189 million in the quarter due to the expenses it had with its MVNO service. This figure is a way bigger number than what analysts had earlier expected. The losses incurred during this quarter play a crucial role at Comcast’s overall earnings. Analysts at Oppenheimer reported that the $ 7.2 billion EBITDA (Earnings before interest, tax, depreciation, and amortization) of Comcast missed the estimated number by 3% on higher corporate spending.
But for Comcast executives, Xfinity Mobile is “off to a really good start.” The service just launched in May and it’s still too early to talk about its plans for expanding distribution; especially since the company is just starting to offer mobile solutions with broadband. Because of this, the focus of the executives with Xfinity Mobile at this time is to attract more customers and retain its existing customers.
Additionally, Comcast has just inked a new mobile agreement with Charter wherein the two companies will be developing and utilizing a common operating platform for the two MVNO services they offer. With this deal in place, Comcast will be able to cut down on its expenses with its Xfinity Mobile service.
And since the two companies are focused on how to be efficient, reduce costs, and its back office operations, this deal will be equally beneficial for either party.
Source: Fierce Wireless