NBCUniversal launches new Peacock streaming service.
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Comcast reported second-quarter revenue and earnings that beat analysts’ estimates, but the cable TV provider didn’t increase broadband customers in a quarter for the first time in history.
Comcast’s high-speed Internet customers were flat in the quarter, falling short of analysts’ average estimate of 84,000, according to FactSet. Revenue rose 5.1% to $30.02 billion year-over-year, driven by NBCUniversal’s theme parks and studios. Adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 10.1% to $9.8 billion.
Comcast shares fell about 3% in premarket trading.
Comcast is seeing growing competition for high-speed broadband, its most profitable product. For more than a decade, the cable industry has dominated the home broadband market, but wireless companies like T-Mobile are now competing with 5G home internet products. T Mobile added 560,000 broadband users in the second quarterwell above its total of 338,000 in the first quarter.
Here are the key numbers:
- Earnings per share: $1.01, adjusted from a 92-cent estimate, according to Refinitiv.
- Income: $30.02 billion, up from an estimate of $29.68 billion, according to Refinitiv.
- High speed internet clients: 0 vs. 84,000 net additions, according to the average estimate among analysts polled by FactSet.
Comcast chief executive Brian Roberts called the downturn temporary in a statement as macroeconomic conditions such as higher inflation limit new connections for the company. Broadband revenue rose 6.8% year-over-year to $6.1 billion for the quarter, driven by higher rates and more residential customers than a year earlier.
“We achieved our highest adjusted EBITDA margin on record, even in a unique and evolving macro environment that is temporarily putting pressure on our new customer subscriptions,” said Roberts.
Comcast has over 3 million broadband customers since March 2020.
Comcast lost 521,000 video customers in the quarter and has now lost 1 million video subscribers in the first six months of 2022. Consumers are moving away from traditional pay-TV subscriptions at an accelerated pace in favor of streaming services such as Netflix, Disney+, HBO Max and NBCUniversal’s Peacock.
Brian Roberts, Chairman and CEO of Comcast
David A. Grogan | CNBC
Voice subscribers decreased by 286,000 quarterly, while wireless subscribers increased by 317,000. Wireless revenue grew nearly 30% year-over-year to $722 million. Business services rose 10% to $2.4 billion.
NBCUniversal’s quarterly revenue rose 18.7% to $9.4 billion. Adjusted EBITDA for NBCUniversal rose 19.5% to $1.9 billion.
Studio revenue increased over 33% to $3 billion thanks to Jurassic World: Dominion, which topped $900 million worldwide box office.
Universal’s theme park business continued to recover from last year’s pandemic slowdown. Revenue jumped about 65% to $1.8 billion. Adjusted EBITDA increased 187% to $632 million, the parks division’s highest Q2 EBITDA.
Peacock’s paid subscribers remained at 13 million after gaining 4 million last quarter. Comcast said it expects Jurassic World: Dominion, along with two films released in theaters in the third quarter – Minions: The Rise of Gru and Jordan Peel’s No – to help boost Peacock’s subscriber base when it transitions to streaming. service. after the expiration of their checkout windows. Comcast reports that “Sunday Night Football” and the World Cup, which starts on November 21st, should also increase Peacock’s subscriber base this year.
Here are the results of Comcast divisions for the quarter compared to last year:
- Cable Communications’ revenue was $16.6 billion, up 3.7% year-over-year.
- Media generated $5.3 billion in revenue, up 3.6%.
- The studios generated $3 billion in revenue, up 33.3%.
- Theme parks generated $1.8 billion in revenue, up 64.8%.
- Sky’s revenue was $4.5 billion, down 13.8%.
Disclosure: Comcast is the parent company of NBCUniversal, which includes CNBC.
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