Comcast Reports Strong Q3 Earnings Boosted by Olympics Success and Peacock Streaming Growth
Comcast Corp (NASDAQ: CMCSA) recently released its third-quarter financial results, showcasing a 6.5% year-over-year revenue decline to $32.07 billion, surpassing analyst expectations of $31.64 billion. The company reported an adjusted EPS of $1.12, exceeding analyst estimates of $1.06, leading to a positive stock price reaction following the earnings announcement.
The Summer Olympics held in Paris played a significant role in boosting NBCUniversal revenue and attracting more Peacock subscribers. The media segment saw a substantial revenue increase of 36.5% year over year to $8.23 billion, with revenue excluding the Olympics growing by 4.9% to $6.33 billion. Peacock’s paid subscribers surged by 29% year over year to 36 million, with revenue soaring by 82% to $1.5 billion.
Studios revenue experienced a 12.3% year-over-year growth to $2.83 billion, attributed to higher content licensing and theatrical revenue from successful releases like Despicable Me 4 and Twisters. However, Theme Parks revenue dipped by 5.3% year over year to $2.29 billion due to decreased revenue at domestic theme parks resulting from lower guest attendance.
Connectivity & Platforms adjusted EBITDA remained steady year over year at $8.3 billion, with a margin expansion of 30 bps to 40.9%. Comcast reported generating $3.4 billion in free cash flow during the quarter.
Despite its overall positive performance, Comcast faced challenges, losing 87,000 broadband customers during the period amid stiff competition from telecom companies. Additionally, the company lost 365,000 video subscribers as streaming services like Netflix Inc gained popularity. On a brighter note, total domestic wireless line net additions reached 319,000.
During a conference call, Comcast hinted at the possibility of forming a new company comprising cable networks. At the latest check, Comcast stock was up 6.53% at $45.01 premarket.
In conclusion, Comcast’s third-quarter results reflect a mixed performance across its various segments, with notable successes in media and streaming services offset by challenges in broadband and video subscriptions. The company’s strategic moves to explore new business ventures demonstrate its commitment to adapting to the evolving market landscape.
