Comcast Q3 Earnings: Peacock Losses and Subscriber Update

Bassyonni

ago 3 hours

Comcast Q3 Earnings: Peacock Losses and Subscriber Update

Comcast’s third-quarter earnings report highlighted significant developments regarding its Peacock streaming service, subscriber base, and other business segments. The report revealed that Peacock reduced its losses to $217 million, a notable decrease from $436 million in the same quarter last year.

Peacock Subscriber Update and Revenue Insights

As of September, Peacock maintained a steady count of 41 million paying subscribers, consistent with numbers from earlier quarters. This marks a rise from 36 million subscribers recorded a year prior.

Q3 Loss: $217 million (down from $436 million year-over-year)
Subscribers: 41 million (unchanged from previous quarters)
Revenue: $1.4 billion (a decrease from $1.5 billion in the same quarter last year)

The decline in revenue was attributed partly to the absence of the revenue boost seen during the Paris Olympics in the prior year. However, the adjusted EBITDA loss shrank significantly, having previously recorded a loss of $101 million in the second quarter.

Media Unit Performance

The Media unit, which encompasses Peacock, reported an adjusted EBITDA increase of 28 percent, reaching $832 million. This rise was largely due to a 24 percent decrease in operating expenses compared to the Olympic period from the previous year, despite a 20 percent revenue drop to $6.59 billion. Adjusting for the Olympics, revenue saw a 4.2 percent increase.

Studios Segment Developments

In the Studios segment, revenue climbed 6 percent to $3 billion, primarily fueled by enhanced content licensing revenue. Theatrical releases, including “Jurassic World Rebirth,” also contributed positively. However, adjusted EBITDA fell by 22 percent to $365 million, largely driven by a rise in operating expenses.

Theme Parks Drive Growth

Theme park revenue surged 18.7 percent to $2.71 billion, buoyed by the successful opening of Epic Universe in May. Adjusted EBITDA for this segment increased by 13 percent to $958 million, despite a 22 percent hike in operating costs related to the new attraction.

Transaction Costs and Company Leadership

The planned Versant transaction, aimed at restructuring Comcast’s cable networks, incurred costs of $116 million in the third quarter, bringing total costs for the year to $277 million. In this transaction, Comcast will retain key properties, including Peacock and NBC.

Comcast is led by chairman and CEO Brian Roberts, along with president Michael Cavanagh, who will transition to co-CEO in the upcoming year.

Performance in Core Cable Business

The core cable systems business noted a net loss of 104,000 domestic broadband customers and 257,000 domestic video customers. However, the wireless segment added 414,000 new lines during the same period.

Roberts emphasized the momentum in content and experiences, particularly concerning NBC and Peacock, as the company prepares for a competitive season of live sports, including the recently commenced NBA coverage.