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Xfinity Mobile's Q2 2018 Earnings Show Highest Customer Gains Despite Losses

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Comcast's Xfinity Mobile service unveiled its Q2 2018 earnings yesterday and it shows some conflicting numbers.

For this quarter, the Verizon MVNO reportedly gained 204,000 customers. This number is a milestone for the company, as it proves to be the biggest quarterly customer adds that they earned ever since launching a year ago. Prior to this quarter, Xfinity Mobile had mobile customer adds that reached 180,000 (Q4 2017) and 196,000 (Q1 2018). As a whole, the mobile service provider now has 781,000 customers.

Despite its growing customer count, however, all is not good news for the MVNO. As a matter of fact, Xfinity Mobile's Q2 2018 report also includes a loss of $185 million. Arguably, this is an improvement from the $189 million the company lost in Q1. But it still is a lot of money to lose, especially for a company that is just starting out in the market.

As an MVNO, Xfinity Mobile buys capacity in bulk from Verizon, its network provider. If the MVNO has a higher number of customers, it can reduce the price of the capacity. In order to break even though, Comcast will need to really step up in gaining more customers.

Even analysts are worried about Comcast's current strategy. Walter Piecyk, an analyst for BTIG, wrote that the estimated "cumulative Cash EBITDA losses from its wireless business have topped $1.2 billion since the launch in May of last year, while subscriber growth has stagnated at 200,000 per quarter, below the pace that would enable the company to top the 1 million subscribers additions that investors expected in 2018."

Analysts had previously expected the MVNO to gain around 300,000 customers in the quarter, a number which Xfinity Mobile failed to reach this quarter. Perhaps its numbers could improve in Q3 or Q4? 



Source: FierceWireless

5 comments:

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  1. So if Comcast can't add customers fast enough by practically giving their cell service away, how is Spectrum going to make it with much higher prices?

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  2. Problem with their service is they still don't have BYOD for Android, they don't have a mid-range price plan (5-10GB), and their unlimited plan is too expensive (speed capped at 20GB).

    They throw a lot of incentives your way, but the actual Verizon service is just too slow and depriortized. Might as well go to Cricket or MetroPCS with free phones and better plans.

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  3. No surprise they're losing money, Comcast in general is ran by a bunch of clueless clowns who are throwing stuff at the walls trying to see what sticks instead of listening to their customers and the public. Prime example, lots of people (including myself) have complained and left numerous feedback to Comcast about their poor BYOD service. Let me take you back to the beginning, Comcast had no interest or intentions in providing BYOD services (which was stupid) because you're a new company to the wireless industry "you do not know how the public will receive you In That Market". BYOD services should've been a top priority when it came to having device options that would literally cost yourself and consumers nothing for a sim kit instead of getting into unnecessary debt early by bulking $$$$$ up on top flagship devices for your inventory just so you could keep up with the Joneses. Three flagships and online ordering for BYOD sim kits for both Android/Apple devices would've been a perfect lunch, lots of customers, and lesser the debt. It wasn't until customers and potential customers started complaining even more and threatened to look elsewhere for wireless service is what made them finally give in but it took months for them to launch it and it still sucks! IMO BYOD is one of their major downfalls on why they're draining money and not getting the customers they need/want. No BYOD Android Support/Compatibility (still), and no online sim kit ordering (in-store only) two major inconveniences. Now they're draining so much money and losing out on money all at once.

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    Replies
    1. I can order a SIM online. I can move my active SIM to my Android phone. Do your homework.

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    2. No, why don't you stop replying to people (Anonymous 2:20 PM) before you do your own research and fully read/comprehend a post or comment. I wasn't referring to NOW, they just NOW introduced a sim request feature online. This wasn't the case in the beginning and hasn't been for a very long time up until recent. Comcast missed out and are still missing out on what would've been lots of potential BYOD customers had they done this in the beginning, I also stated in my comment how there is STILL no BYOD support/compatibility for android devices. I could've sworn PPNS made an article about how "Comcast is gaining Mobile subscribers but losing money as well." and that I made my comment perfectly clear on why it could be IMO (In My Opinion) based on how Xfinity Mobile was launched "in the beginning" and what markets they missed out on that could've avoided money losses. Please read and comprehend posts and comments a little better before replying to people's comments.

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