Comcast Corp. (CMCSA) has announced strong third-quarter earnings, exceeding analyst expectations despite a slight revenue decline. The company reported a 6.5% year-over-year drop in revenue to $32.07 billion, outperforming the estimated $31.64 billion. Adjusted earnings per share (EPS) also came in above expectations at $1.12, surpassing the predicted $1.06. The stock price reacted positively to the news, showing a significant increase in premarket trading.
One of the key drivers of Comcast’s strong performance was the Summer Olympics in Paris. This event significantly boosted revenue for NBCUniversal and contributed to an impressive rise in Peacock subscribers. The media segment saw revenue growth of 36.5% year-over-year, reaching $8.23 billion. Excluding the Olympics impact, revenue grew by 4.9% to $6.33 billion.
Peacock, Comcast’s streaming platform, continues to gain traction. Paid subscribers rose 29% year-over-year to 36 million, and revenue surged 82% to $1.5 billion. Comcast’s Studios segment also delivered strong results, with revenue increasing by 12.3% year-over-year to $2.83 billion. This growth was driven by higher content licensing and theatrical revenue, boosted by the success of films like “Despicable Me 4” and “Twisters.”
However, Comcast faced challenges in its theme park business and subscriber base. Theme Parks revenue dropped 5.3% year-over-year to $2.29 billion due to lower attendance at domestic theme parks. The company also lost 87,000 broadband customers during the quarter, likely due to increased competition from telecom companies. Additionally, Comcast lost 365,000 video subscribers as streaming giants like Netflix continue to gain popularity.
Despite these challenges, Comcast remains optimistic about its future. The company reported that its Connectivity & Platforms segment achieved a stable adjusted EBITDA of $8.3 billion, with a margin expansion of 30 basis points to 40.9%. Comcast also generated $3.4 billion in free cash flow during the quarter.
Looking ahead, Comcast is exploring the possibility of creating a new company that would house its cable networks. This move suggests that the company is actively seeking new avenues for growth and innovation in an increasingly competitive media landscape.
