Peacock Reports $552 Million Loss, Gains 44 Million Subscribers
Peacock, the streaming platform owned by Comcast’s NBCUniversal, reported a staggering fourth-quarter loss of $552 million. This loss represented a significant increase from the prior year’s loss of $372 million. Comcast attributed this increased loss partly to strategic investments in high-profile sports events, including the NBA launch and an exclusive NFL game.
Financial Performance and Subscriber Growth
Despite the financial setbacks, Peacock generated $1.6 billion in total revenue, an increase from $1.3 billion in the same quarter last year. The service saw its paying subscribers rise to 44 million, up from 41 million at the end of the previous quarter and 36 million a year earlier.
Insights from Comcast Leadership
During an earnings call, Comcast CFO Jason Armstrong characterized Peacock as having “reached meaningful scale.” He forecasted a potential improvement in Peacock’s financial losses by 2026, as the company adapts to changes in the media landscape.
Comcast CEO Brian Roberts discussed the broader market dynamics affecting Peacock. He noted ongoing industry consolidation, particularly concerning potential dealings with Warner Bros. Discovery. While Comcast initially considered pursuing an acquisition, Roberts emphasized a cautious approach due to concerns about the financial impact on their balance sheet.
Overall Comcast Financial Overview
- Comcast reported total revenue of $32.3 billion for the quarter, aligning closely with analyst predictions of $32.34 billion.
- This figure marked a 1.2% increase from $31.9 billion in the same quarter last year.
- Net income attributable to Comcast decreased by 55% to $2.16 billion.
- Adjusted earnings per share fell by 12.4% to 84 cents, surpassing analyst expectations of 76 cents.
Business Segment Performance
Content and experiences revenue rose by 5.4% to $12.7 billion, while media revenue, which includes NBCUniversal, grew by 5.5% to $7.6 billion. However, Universal film studio revenues dropped by 7.4% to $3.02 billion due to declines in both licensing and theatrical revenues. In contrast, theme park revenues surged by 22% to $2.9 billion, bolstered by the recent opening of Epic Universe.
On the downside, Comcast’s connectivity and platforms revenue decreased by 1.1% to $20.2 billion as the company faced continued challenges in its cable and telecom sectors. The business unit lost 245,000 video subscribers and another 181,000 broadband subscribers in the fourth quarter alone.
Strategic Changes Ahead
Recently, Comcast announced the separation of many cable networks into a new entity named Versant Media Group, which will be led by CEO Mark Lazarus. The company also highlighted its commitment to enhancing broadband, wireless, and entertainment distribution, along with adjustments to packaging and pricing strategies.
