Peacock Reports Reduced Q3 Loss of $436 Million Amid Surge in Subscribers to 36 Million Thanks to Paris Olympics

Comcast saw a surge in its shares by over 7% during pre-market trading following its strong performance in the third quarter, driven by the success of the Paris Olympics and potential plans to spin off its struggling cable network portfolio into a separate entity.

The company’s streaming service, Peacock, reported a loss of $436 million in the quarter, showing a 22% improvement from the previous year. Peacock’s revenue soared by 82% to $1.5 billion, with a significant increase in paid subscribers reaching 36 million, up by 29%.

The Paris Olympics played a crucial role in Comcast’s success, generating record-high revenue of $1.9 billion. The event attracted an average of 31 million daily viewers across Comcast’s linear networks and Peacock, marking an 82% increase compared to the 2021 Summer Olympics.

Comcast’s top-line results for the quarter included net income of $3.63 billion, a decrease of 10.3% year over year. Adjusted net income fell by 3.3% to $4.3 billion. Earnings per share stood at 94 cents, down by 4.2% year over year, while adjusted EPS reached $1.12 per share, up by 3.3%.

Revenue for the quarter hit $32.07 billion, surpassing expectations at 6.5% growth. Adjusted EBITDA amounted to $9.74 billion, down 2.3% year over year.

The Studios division showcased a strong performance with a 12.3% increase in revenue and a 9% rise in adjusted EBITDA, driven by successful releases like "Twisters" and "Despicable Me 4." However, weakness in theme parks led to a 5.3% revenue decline and a 13.8% drop in adjusted EBITDA.

In a surprising move, Comcast revealed its consideration of spinning off its cable assets and exploring streaming partnerships to boost Peacock’s growth. The company aims to adapt to the evolving media landscape by potentially separating its cable network from the larger entity.

Despite shedding pay TV and broadband subscribers, Comcast added 319,000 domestic wireless lines. The Connectivity & Platforms segment saw total revenue decrease slightly to $20.29 billion, with residential revenues dipping by 1% and business services revenues rising by 4.5%.

Looking ahead, Comcast anticipates the opening of its Epic Universe theme park in May 2025, which is expected to transform Universal Orlando into a comprehensive entertainment destination. The company remains focused on strategic initiatives to navigate industry challenges and capitalize on emerging opportunities for growth.