Comcast reported mixed financial results in its latest earnings report, falling short of revenue estimates due to challenging year-over-year comparisons for its film studio and theme parks. The company reported earnings per share of $1.21 adjusted versus the expected $1.12, while revenue came in at $29.69 billion compared to the expected $30.02 billion. Net income for the quarter ended June 30 was down 7.5% to approximately $3.93 billion or $1 per share, compared to $4.25 billion or $1.02 per share in the same period last year. Adjusted EBITDA fell around 1% to $10.17 billion.
Comcast’s revenue declined nearly 3% to $29.69 billion from the previous year, with revenue from its content and experiences segment – including NBCUniversal TV, theme parks, and Universal Pictures – dropping 7.5% to $10.06 billion. Universal Pictures’ revenue fell 27% to $2.25 billion, facing a tough comparison to the prior year when successful films like “Super Mario Bros.” and “Fast X” boosted earnings. Theme park revenue also dropped nearly 11% to $1.98 billion, as attendance normalized compared to the record-setting 2023. The company is looking forward to upcoming film releases like “Despicable Me 4” and “Twisters,” as well as the November release of “Wicked.”
Despite these challenges, NBCUniversal’s TV business saw a 2% revenue increase to $6.32 billion, helping offset losses in other segments. The company’s streaming service, Peacock, showed significant growth, with paid subscribers increasing 38% to 33 million. Peacock’s revenue also rose 28% to $1 billion, contributing to the media segment’s improved adjusted EBITDA, which was up 9% to $1.36 billion. Losses related to Peacock decreased significantly, from $651 million to $348 million compared to the same period last year.
Comcast faced ongoing pressure in the broadband segment, losing 110,000 residential broadband customers during the quarter. Revenue for the segment that includes Xfinity broadband, cable TV, and mobile services declined 1.5% to $17.82 billion, primarily due to decreases in the cable TV business. The company shed 419,000 cable TV customers in the quarter, but saw growth in the domestic broadband segment, which increased by 3% to $6.57 billion driven by price increases. The mobile business continued to grow, with the number of customer lines increasing by 20% to 7.2 million.
Overall, Comcast’s performance in the latest quarter reflected a mix of challenges and opportunities. While the company faced revenue declines in certain segments like Universal Pictures and theme parks, other areas like the NBCUniversal TV business and Peacock streaming service showed positive growth. The company continues to address challenges in the broadband segment, losing residential customers but seeing growth in the mobile business. Looking ahead, Comcast remains focused on leveraging its content and experiences to drive future growth, including upcoming film releases and continued investment in streaming services like Peacock.
