NEW YORK (Reuters) – Comcast reported quarterly revenue that exceeded expectations, driven by strong performance in streaming and theme parks, but also revealed a surprising loss in broadband customers.
The media giant’s revenue for the third quarter grew by 0.9% to $30.12 billion, surpassing analysts’ estimated revenue of $29.68 billion, as per LSEG data.
However, Comcast recorded a significant decrease of 18,000 broadband customers during the quarter. This drop can be attributed to the growing competition from wireless carriers such as Verizon and T-Mobile, who also provide broadband services. FactSet data predicted a gain of 3,600 customers for Comcast.
Comcast unveiled its third set of results since introducing a new reporting structure that includes NBCUniversal in the content and experiences segment. The company reported a 0.8% increase in revenue in this unit, amounting to $10.56 billion for the quarter.
Another notable finding was the decline in advertising revenue in content and experiences, which fell by 8.4% compared to the same quarter of the previous year.
On the other hand, revenue from Comcast’s Peacock streaming service rose by 64% from the previous year. The third quarter saw a growth of 4 million paid subscribers, reaching a total of 28 million subscribers, up from the previous quarter’s 24 million. This increase was partly due to the conversion of Comcast’s existing subscribers, who were previously accessing Peacock for free, into paid subscribers.
The company managed to narrow adjusted losses from Peacock during the quarter to $565 million, achieved partially through implementing price hikes.
Additionally, theme parks revenue climbed by 17.2%, benefiting from the pent-up demand following the COVID-19 pandemic, which had resulted in temporary park closures.
However, despite the overall success of the film “Oppenheimer,” Comcast experienced a decrease in studio revenue by 23.6% compared to the same quarter last year, when blockbuster hits such as “Jurassic World: Dominion” and “Minions: The Rise of Gru” were released.
Excluding certain items, the company earned $1.08 per share.
Reporting by Helen Coster in New York and Samrhitha Arunasalam in Bengaluru; Editing by David Gregorio
