Comcast Reports Q1 2025 Revenue Decline, Announces Nitel Acquisition

Comcast Corporation reported its financial results for the first quarter of 2025, revealing a slight decline in revenue and net income compared to the same period in 2024. The company generated $29.887 billion in revenue, a decrease of 0.6% from $30.058 billion in the prior year. Net income attributable to Comcast Corporation was $3.375 billion, down 12.5% from $3.857 billion in the previous year. Basic earnings per share also fell to $0.90 from $0.97, reflecting an 8% decrease.

The decline in revenue was primarily attributed to decreases in the Connectivity & Platforms segment, which includes residential and business services, while the Content & Experiences segment saw a modest increase. Notably, the Residential Connectivity & Platforms segment reported revenue of $17.642 billion, down from $17.868 billion, driven by a decline in video customers, although broadband and wireless revenues showed some growth. The Business Services Connectivity segment, however, experienced a revenue increase of 3.7%, reaching $2.496 billion.

Operationally, Comcast's customer metrics showed mixed results. The total number of domestic broadband customers decreased to 31.643 million, down from 32.188 million a year earlier. Conversely, domestic wireless lines increased to 8.148 million, up from 6.877 million. The company also reported a decline in domestic video customers, which fell to 12.096 million from 13.618 million. The total number of customer relationships across all segments decreased to 51.381 million, down from 51.971 million in the prior year.

In terms of strategic developments, Comcast announced the acquisition of Nitel, a network-as-a-service provider, for $1.3 billion, aimed at enhancing its connectivity solutions for enterprise customers. The company is also preparing for a planned spin-off of select domestic cable television networks and digital assets into a new publicly traded company, targeting completion by the end of 2025, subject to regulatory approvals. This strategic move is expected to allow Comcast to focus on its core businesses while unlocking value for shareholders.

Looking ahead, Comcast anticipates continued challenges in the competitive landscape, particularly in the video segment, as consumer preferences shift. The company aims to bolster its broadband and wireless offerings while managing costs effectively. Despite the current economic uncertainties, Comcast remains committed to investing in its infrastructure and content to drive future growth. The company expects to maintain its dividend payments and continue share repurchases under its newly authorized $15 billion program, reflecting confidence in its long-term financial health.