Prepare for Comcast’s third-quarter earnings report with these key insights

Comcast exceeded third-quarter earnings projections, driven by the success of the Summer Olympics in Paris, which bolstered NBCUniversal’s revenue and Peacock’s subscriber base. The company’s stock rose by 6% during early trading on Thursday.

In comparison to estimates from analysts surveyed by LSEG, Comcast’s performance showcased adjusted earnings per share of $1.12, surpassing the expected $1.06, and revenue of $32.07 billion, higher than the anticipated $31.66 billion.

For the quarter concluding on Sept. 30, net income decreased by 10% to $3.63 billion, or 94 cents per share, in contrast to $4.05 billion, or 98 cents per share, from the previous year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped by 2% to approximately $9.74 billion. Comcast reported earnings per share of $1.12 for the quarter after adjusting for one-time items.

The company’s revenue surged by 6.5% to $32.07 billion compared to the same period in the prior year. The revenue growth was primarily fueled by the exclusive broadcasting of the Summer Olympics in Paris by NBCUniversal in the U.S. and domestic broadband revenue, despite a slowdown in customer growth.

The media segment, predominantly consisting of NBCUniversal, experienced a nearly 37% revenue increase to $8.23 billion, largely attributed to the Olympics. Excluding the impact of the Summer Games, revenue still rose by nearly 5%. This segment also encompasses NBCUniversal’s cable TV networks such as Bravo, Syfy, and CNBC. During a recent call, Comcast President Mike Cavanagh disclosed the company’s contemplation of separating its cable networks business.

The revenue surge in the content and experiences segment, inclusive of theme parks and film studios, by 19.3% to approximately $12.6 billion was largely driven by the success of the Summer Olympics in Paris. The event garnered an average daily viewership of 31 million across NBC’s TV and streaming platforms, generating a record $1.2 billion in advertising revenue.

Peacock, Comcast’s streaming platform, experienced a significant boost from the Olympics, with an additional 3 million subscribers. Paid subscribers on the platform surged by 29% year over year to 36 million, leading to an 82% increase in Peacock revenue to $1.5 billion.