Comcast Sees Tough Q3 Comps From Paris Olympics Last Year But Beats Forecasts; Epic Universe Revs Up
Comcast’s quarterly number topped Wall Street forecasts with Epic Universe contributing to 19% revenue growth at Theme Parks, advertising steady thanks to Peacock — and excluding a massive year-earlier bump from the Paris Olympics — and good news on the subscriber front with fewer domestic broadband losses and a jump in wireless customers.
Total revenue dipped 2.7% to $31.2 billion with adjusted earnings per share flat at $1.12 – both beating analysts’ consensus.
It’s a pivotal moment for the Philadelphia-based media giant as it considers a run for Warner Bros, Discovery and prepares to spin off its cable networks into a new company, Versant.
Meanwhile, it’s recalibrating its broadband business amid competitive headwinds.
Comcast opened the new Epic Universe theme park in May and Universal Horror Unleashed opened in Las Vegas in August. It nailed down succession planning last month, elevating President officer Mike Cavanagh to co-CEO with Brian Roberts.
Universal’s Jurassic World: Rebirth, which has grossed nearly $900 million to date at the global box office, nudged theatrical revenue. Studios profit fell 22% on higher costs associated with content licensing sales and higher marketing and promotion expenses for recent and upcoming theatrical film releases. Universal Studios has just nabbed Taylor Sheridan from Paramount.
In media, domestic ad revenue plunged 41% with Paris but was up over 2% without. The Paris Olympics had added $1.9 billion of incremental revenue last year.
Profit grew on lower programming costs and Peacock trimming losses $219 million from the year before. Streaming subscribers rose 14% from year-ago to at 41 million and were about flat from the previous quarter.
The company lost 104,000 broadband customers, mostly residential (91k), fewer than 226,000 the previous quarter and than Wall Street had anticipated. Comcast has committed to keeping customers happier with new pricing and contract options and bundles and more attentive customer service.
“We’re making steady progress as we reposition the company for long-term, sustained growth,” said chairman and CEO Brian Roberts.
“In Connectivity, we’re taking deliberate steps to strengthen our broadband foundation and accelerate wireless as a meaningful growth engine, adding a record 414,000 wireless lines this quarter – clear evidence of the value of our converged offerings. In addition, Business Services delivered another solid performance.”
“In Content & Experiences, we’re building momentum across NBC and Peacock as we head into one of the most exciting stretches of live sports in our history, including robust NBA coverage which just began last week.”
He said “the early success of Epic Universe contributed to 19% revenue growth at our Theme Parks, reflecting the strength of our newest attractions and the enduring appeal of the Universal brand.”
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