Comcast sets out restructuring as broadband losses deepen
October 23, 2026 11.34 Europe/London By Julian Clover


Comcast has outlined a major restructuring ahead of the separation of NBCUniversal and Sky, as worsening US broadband losses contrasted with a second consecutive profitable quarter for streaming service Peacock.

The group expects a charge of more than $1 billion in the fourth quarter, largely linked to its transformation programme. The disclosure follows reports of significant job cuts, although Comcast has yet to announce how many employees will be affected.

Co-chief executive Mike Cavanagh described the programme as “the most significant operating and cost transformation in our company’s history”.

The latest redundancy reports concern the connectivity operation, encompassing cable television, broadband and mobile. They follow a separate round of proposed changes to NBCUniversal’s Global Streaming Technology organisation, confirmed earlier in October.

Those earlier cuts predominantly affect Sky, with some US-based NBCUniversal employees also impacted. The final number depends on employee consultations. NBCUniversal said the changes were intended to ensure the organisation had the structure and resources needed for future growth.

Technology is central to Comcast’s operational changes. The company is expanding its use of AI through partnerships with Sierra and Cresta, covering automated customer interactions and support for human agents. It says customer service contact rates have fallen by approximately 20%, with more than 30 million fewer interactions so far this year.

US broadband remains under pressure. Comcast lost 144,000 residential broadband customers during the quarter, compared with 91,000 a year earlier and the 116,800 decline expected by analysts polled by FactSet. Aggressive competition from fibre operators and wireless providers continues to challenge customer retention.

Domestic broadband revenue fell 4.7% to $6.24 billion, reflecting both fewer customers and lower average rates. Comcast’s simplified pricing and free mobile line offers are intended to improve retention, but continue to weigh on broadband revenue per customer.

Mobile provided some compensation. Comcast added 368,000 wireless lines, taking its total to 10.6 million, while wireless service revenue increased 14.7% to $1.05 billion. Domestic pay-TV losses reached 274,000.

Peacock’s performance offered a stronger picture. The streaming service generated $261 million in adjusted EBITDA, compared with a $217 million loss a year earlier, on revenue of approximately $1.8 billion. Paid subscriptions increased 17% year-on-year to 48 million.

Growth in subscription income and the FIFA World Cup helped support the wider Media division, where revenue rose 13% to $5.36 billion. Excluding the tournament’s incremental contribution, revenue increased 8.3%.

However, Cavanagh stopped short of promising uninterrupted quarterly profitability for Peacock. Responding to UBS analyst John Hodulik, he said results would fluctuate with the timing of rights costs, with management focused on improving profitability over annual periods.

The subscriber base remained stable against the previous quarter despite a late-summer price increase. Peacock’s next distribution push includes a bundle with YouTube Premium, aimed at younger viewers who already consume NBC programming on YouTube but do not subscribe to Peacock. Cavanagh indicated further partnerships could follow.

For Sky, the principal strategic development remains its planned separation alongside NBCUniversal, which management says is on track for mid-2027. Cavanagh highlighted Sky’s European customer relationships, sports and entertainment offering, and the proposed ITV acquisition as strengths of the future business.

Comcast’s international connectivity revenue, covering broadband and mobile activities in the UK and Italy, increased 3.1% to $1.31 billion, or 3.5% at constant currencies. Growth primarily came from wireless equipment sales. The figure covers connectivity rather than Sky’s entire television and content operation.

Overall, Comcast reported revenue of $29.3 billion, down 6.1% on a reported basis but up 0.5% on a pro forma basis. Adjusted EBITDA was $9.1 billion, down 5.8% as reported and up 0.8% pro forma.