Peacock turns profitable as Comcast readies its big breakup
Comcast’s latest quarter showed NBCUniversal gaining steam while broadband kept shedding customers ahead of a planned split into two public companies.
By Sal Moretti · Money Reporter
2 min read
Peacock made money for the first time since its 2020 debut, Comcast said Thursday, handing NBCUniversal a clean win just as the company prepares to separate its media empire from its broadband business.
The streaming service got a boost from live sports, including the FIFA World Cup and NBA postseason, and added subscribers during the second quarter, according to Comcast. The company’s content and experiences division, which includes NBCUniversal, posted revenue growth of nearly 23% from a year earlier.
That strength came from TV, film and theme parks, with Comcast reporting $10.73 billion in revenue for the division. The World Cup, which began in mid-June, helped lift results through Telemundo’s Spanish-language U.S. broadcasts, CNBC reported.
Comcast said TV media revenue benefited from Peacock and higher advertising. Its film studio revenue climbed 25%. Theme parks revenue rose nearly 3%, as stronger Orlando results were partly offset by weaker performance at international parks.
Broadband stays under pressure
The cable and connectivity side of Comcast had a rougher quarter. Revenue in the connectivity and platforms segment, which includes Xfinity broadband, mobile and cable TV, fell 3% to $19.8 billion, Comcast said.
Adjusted earnings before interest, taxes, depreciation and amortization for that unit dropped nearly 6% to $7.96 billion.
Comcast also continued to lose broadband customers. The company reported a decline of 167,000 residential broadband customers in the quarter, along with the loss of 280,000 cable TV subscribers.
The company said its revised broadband strategy is gaining traction after years of competition and pressure from alternatives such as 5G providers. That strategy includes lower-priced plans and promotions, which weighed on revenue in the quarter.
Mobile remained the bright spot in the connectivity business. Comcast said mobile additions set another quarterly record and lifted the company to 10.2 million total lines. CNBC reported that mobile has become a central piece of Comcast’s effort to support its broadband business.
Two Comcasts are coming
The mixed quarter landed weeks after Comcast announced plans to split its media and broadband operations into separate publicly traded companies.
In Thursday’s earnings release, co-CEOs Brian Roberts and Mike Cavanagh said the separation would be “an important step toward creating two focused companies with the financial strength and flexibility to pursue their respective growth strategies.”
Overall, Comcast revenue fell 1.2% in the second quarter to $29.94 billion. On a pro-forma basis, which accounts for the Versant spinoff completed at the start of the year, Comcast said revenue rose 4.7%.
The company reported adjusted earnings of $1.04 per share. That beat Wall Street expectations of 97 cents per share, according to LSEG.
Comcast shares were up about 1.5% in premarket trading Thursday, CNBC reported.
This story draws on original reporting from CNBC.