Peacock turns profitable as Comcast prepares media split
Comcast’s second-quarter results showed gains at NBCUniversal while broadband losses continued ahead of a planned company separation.
By Hana Yoshida · Markets Reporter
2 min read
Comcast said Peacock became profitable for the first time in the second quarter, giving NBCUniversal a lift as the company prepares to separate its media and broadband operations. The results underscored the split between a growing entertainment business and a connectivity unit still losing broadband customers.
Comcast reported Thursday that revenue in its content and experiences segment, which includes NBCUniversal, rose nearly 23% from a year earlier to $10.73 billion. The company said the segment benefited from stronger television and film results, including the impact of live sports on Peacock and Telemundo.
Peacock, launched in 2020, reached profitability during the quarter, according to Comcast. The company said the streaming service gained from FIFA World Cup coverage, the NBA postseason and subscriber additions.
NBCUniversal’s TV media business got a boost from Peacock and higher advertising revenue, Comcast said. Film studio revenue increased 25%, while theme parks revenue rose nearly 3% as stronger results in Orlando were partly offset by weaker performance at international parks.
Broadband remains under pressure
Comcast’s connectivity and platforms segment, which includes Xfinity broadband, mobile and cable TV, continued to contract. The company said revenue in the unit fell 3% to $19.8 billion, while adjusted earnings before interest, taxes, depreciation and amortization dropped nearly 6% to $7.96 billion.
Comcast said it lost 167,000 residential broadband customers in the quarter. It also shed 280,000 cable TV subscribers, continuing a long-running decline in traditional pay-TV service.
The company said its revised broadband strategy is gaining traction after years of competition and pressure from alternatives such as 5G home internet providers. Comcast has put more emphasis on bundles that combine mobile service with broadband, along with lower-priced plans and promotions.
Mobile remained a stronger part of the business, according to Comcast. The company said it had another record quarter for mobile additions, bringing its total to 10.2 million lines.
Two companies planned
The mixed results came weeks after Comcast said it plans to divide its media and broadband businesses into separate publicly traded companies. In the earnings release, co-CEOs Brian Roberts and Mike Cavanagh said the move would create “two focused companies” with financial flexibility to pursue their own growth plans.
Comcast reported total second-quarter revenue of $29.94 billion, down 1.2% from a year earlier. On a pro forma basis, reflecting the effect of the Versant spinoff completed at the start of the year, Comcast said revenue rose 4.7%.
The company posted adjusted earnings of $1.04 per share. That exceeded the 97 cents per share expected by analysts surveyed by LSEG.
Comcast shares were about 1.5% higher in premarket trading Thursday, according to CNBC.
This story draws on original reporting from CNBC.