(Bloomberg) — Comcast Corp., the largest U.S. cable provider, topped Wall Street’s forecasts for third-quarter sales and profit, benefiting from growth in broadband subscribers and a recovery at its theme parks after pandemic-driven closings.
- Earnings rose to 87 cents a share, excluding some items, Comcast said Thursday, beating the 75-cent average of analysts’ estimates. Revenue soared to $30.3 billion, also beating projections.
- The company added 300,000 broadband internet customers, in line with analysts’ forecasts of 301,000.
- See details here.
Key Insights
- Comcast investors typically focus on the pace of broadband subscribers, and the lighter showing was largely expected after Chief Financial Officer Michael Cavanagh warned last month of a slight slowdown in new customers, citing disruptions caused by the pandemic.
- The company lost 408,000 pay-TV customers. That’s fewer than the 421,000 analysts were expecting but nearly 50% higher than the third quarter a year ago. Cord cutting is accelerating as customers abandon cable TV in favor of online streaming, and Comcast is less interested in fighting to keep low-margin customers.
- Revenue at NBCUniversal’s theme parks rose to $1.45 billion, from $385 million a year ago.
- NBCUniversal’s media revenue, which includes its TV networks and Peacock streaming service, increased 9% when the Olympics are excluded. Despite a sharp decline in TV viewership for the games this summer, NBC generated $1.8 billion in revenue for the broadcast of the games and turned a profit.
- Peacock, NBC’s new streaming service, generated $230 million in revenue, roughly doubling from $122 million in the second quarter of this year. It posted a loss of $520 million, up from $363 million three months earlier in losses, as Comcast invested more in programming.
Market Reaction
- Comcast rose about 2.1% in early trading. As of Wednesday’s close, Comcast shares were unchanged this year, compared with a 21% gain for the S&P 500.
Get More
- Read the statement.
- See Comcast estimates.
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