Comcast shares slump despite robust rollouts

These days even the cable giants can’t catch a break.

Comcast, the biggest of the lot, added video and broadband subscribers at an extraordinary clip in the third quarter and got a huge ratings boost from the Rio Olympics, but didn’t stop investors from unloading the stock Wednesday.

Shares fell 3 percent, to $62.56, on worries that nationally distributed online video TV bundles are about to eat the golden goose. The media colossus reported earnings a day after AT&T announced its new DirectTV Now plan, a $35 a month online package of 100 channels.

“People saw DirecTV Now and how aggressively priced it is,” said Anthony DiClemente, a media and internet analyst at Nomura. “Investors worry that these virtual bundles are potentially cannibalistic to the existing cable bundle.”

Wall Street also was surprised that Comcast’s forward-looking programming expense guidance was a little higher than expected in 2016 and 2017, DiClemente said.

Macquarie analyst Amy Yong added in an investor note: “One weekend dramatically altered the course of Comcast’s strategy. The focus on streaming and wireless seems to trump operational excellence.”

Still, Yong notes that Comcast has a year to fortify its strategy against rival telecom incursions.

Comcast also has its own plan to deliver a wireless product to the market, she said.

Most customers for new cheaper online packages — delivered by phone companies via internet connected TVs or mobile devices — are expected to come from the 20 million broadband-only homes, DiClemente suggests.

The arrival of DirecTV Now, as well as similar products from Sling, Sony and soon, Hulu, could actually add to the pay-TV industry, which has been losing households at the rate of 1 percent per year.

Comcast had a stellar quarter by any measure, adding 32,000 video customers — its first uptick in 10 years. The company believes its X1 internet connected set-top-box kept users paying for TV.

It also added 330,000 broadband customers, it’s most robust quarterly increase in seven years.

Comcast Chief Executive Brian Roberts declined to comment on the $85 billion proposed mega merger of AT&T and Time Warner.

NBCUniversal boss Steve Burke fielded a question about declining NFL ratings, and noted that just 1 percent of NFL viewership watched the games via streaming.

Comcast revenue rose 14 percent, to $21.3 billion, while net income attributable to shareholders jumped 12 percent, to $2.24 billion.

Earnings per share were 92 cents, excluding some items, beating Street forecasts by 1 cent.

Separately, the executive in charge of Google Fiber, a nationwide project to build fast internet, is exiting. Craig Barratt will depart the Access division, which includes Google Fiber, and operates in eight cities.